Kingfisher Airlines told to pay dues for more loans

Mumbai: Lenders have told Kingfisher Airlines to clear its dues within a fortnight before they can release any more money sought by the beleaguered private carrier.
In a meeting in Bangalore on Saturday, the lenders told Kingfisher that some banks in the consortium are unwilling to extend any loan facility till the dues are settled, people who attended the meeting said.
"It is like a chicken and egg situation. Lenders don't want to lend till they receive their dues while Kingfisher wants money to stay afloat and earn revenues," a banker who attended the meeting told ET. The arrears estimated by banks till the end of December are Rs 260-280 crore.
Ravi Nedungadi, chief financial officer of the UB Group, said the airline has pending requests with banks for Rs 670 crore of funded and non-funded working capital limits. He also said the figure is Rs 180 crore and not Rs 260-280 crore.
20/12/11 Sangita Mehta/Economic Times

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Categories: Kingfisher Dec 2011