HDFC to auction Jet’s office space

Clipped wings: Cash-strapped Jet Airways was grounded last month after banks refused to infuse funds.   | Photo Credit: AFP

Move comes after cash-strapped airline defaults on repayment of ₹415 crore

Mortgage lender Housing Development Finance Corporation (HDFC) has decided to put office space of grounded airline Jet Airways in Bandra Kurla Complex on the block after the company defaulted on loan repayment.

According to a public notice issued by the lender, a 52,775 sq ft office space in a commercial building named Godrej BKC would be auctioned on May 15 at a base price of ₹245 crore.

Developed by Godrej

The Godrej BKC building was developed by Godrej Properties in partnership with Jet Airways which owned the land. Jet Airways owes about ₹415 crore to HDFC.

“The borrower has failed to repay the amount due to HDFC Ltd. Accordingly HDFC Ltd. has become entitled to enforce its mortgage over the immovable property,” the notice said.

 

The cash-strapped airline was grounded last month after banks refused to infuse funds.

A State Bank of India-led consortium had put the airline for sale and binding bids were invited.

The bids would be opened later this week.

Jet Airways founder and promoter Naresh Goyal had expressed the hope the airline would fly again after the completion of the bank-led resolution plan, in a letter to the staff on the occasion of 26th anniversary of the airline.

Mr. Goyal, who stepped down as chairman from Jet Airways, had said he made available ₹250 crore from a group company to the banks with the hope for recapitalisation and had even pledged his shareholding in the debt-laden airline.

 

SOURCE:The Hindu