The Cape Town Convention on International Interests in

Mobile Equipment or Cape Town Treaty is an international treaty intended to standardise transactions involving movable property like aircraft and aircraft engines and railway equipment. It creates international standards for registration of ownership, leases and sale contracts and provides legal remedies for default in financing agreements, including repossession and the effects of bankruptcy laws. Besides its dues to AAI and other service providers, Kingfisher has a debt of over Rs 7,000 crore to a consortium of 17 banks led by SBI. SBI has the maximum exposure of over Rs 1,600 crore in the Vijay Mallya-led airline, followed by PNB with Rs 800 crore, IDBI Rs 800 crore, Bank of India at Rs 650 crore and Bank of Baroda has Rs 550 crore. Kingfisher, which has over Rs 15,000 crore in the form of debt, accumulated losses and various dues, has remained grounded since October 1 last year and its flying licence, which was suspended that month, expired on December 31. The airline also has dues towards payment of service tax, income tax, as also Provident Fund of employees and dues of the oil companies. Besides, it has to pay huge amounts to the lessors of its aircraft and service providers like Airports Authority of India.