Kingfisher Airlines to submit recap proposal to SBI this week

Bangalore: Kingfisher Airlines, which had asked SBI Caps to assess its business and recapitalisation needs, will submit a “fully documented” proposal to the State Bank of India, the lead bank of the 13-member consortium before the end of the week.
Apart from the proposal, the airline has also given a commitment to the consortium that it would pay up at least two months' instalment/interest to the banks by December 19, an official of one of the lender-banks told Business Line. According to him, all its future requirements would now have to be supported by documents.
The official said that the airline has sought a short-term working capital funding of about Rs 500 crore from the banks. However, during a press conference last month, Mr Vijay Mallya, Chairman, UB Group, had indicated working capital requirements of Rs 700-800 crore.
“But until the proposal is received, no bank under the consortium will take any additional exposure in the company — short-term or long-term,” pointed out the official.
13/12/11 Business Line

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Categories: Kingfisher Dec 2011