Kingfisher To File Appeal Against Petition

Kingfisher Airlines has never made a profit since its inception in 2005.


Feb. 03--MUMBAI -- Kingfisher Airlines Ltd on Monday said it is filing an appeal against a winding-up petition filed by a European aviation firm.

The Karnataka high court admitted winding-up petition filed by Aerotron Ltd, an unsecured creditor of the company, Kingfisher Airlines said in a filing to National Stock Exchange (NSE) on Monday. Aerotron is a supplier of aircraft parts.

The operating permit of Kingfisher Airlines promoted by Vijay Mallya was suspended in October 2012 by aviation regulator Directorate General of Civil Aviation after the airline's employees struck work. The licence has since expired, although it can be renewed within two years.

Kingfisher Airlines has never made a profit since its inception in 2005.

Besides Aerotron, five groups of creditors to Kingfisher Airlines had filed winding-up petitions in the Karnataka high court against associate companies of its parent UB Group, which has given corporate guarantees for the airline's debt.

The airlines' lenders, including State Bank of India, have started selling pledged shares held in various UB Group companies and the headquarters of the airline to recover their dues.

Copyright 2014 - Mint, New Delhi

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