Kingfisher lenders await viability report: sources

Mumbai: Lenders to cash-strapped Kingfisher Airlines, which has been grounding planes and cutting routes to stay aloft, are awaiting a report on the airline's viability before they approve a $133 million loan, banking sources said on Monday.
SBI Capital Markets Ltd, a unit of State Bank of India, has been hired by the banking consortium to draft a report on the carrier's financial outlook.
That report has yet to be submitted, two sources with direct knowledge of the matter said.
The chairman of State Bank of India, the biggest lender to Kingfisher, said the banks were looking for a solution.
"We are trying to help Kingfisher," Pratip Choudhuri told Reuters on Monday morning.
Asked if the banks were open to lending more to the airline, he said: "Everything is on the table".
Kingfisher shares rose more than 2 per cent on the comments before closing up 0.23 per cent at 21.75 rupees. The airline's shares have fallen about 67 percent since the start of the year, cutting its market value to about $200 million.
While there is no deadline for the viability report, banks have asked SBI Capital to work "expeditiously", one source said.
Kingfisher, controlled by flamboyant liquor tycoon Vijay Mallya, has been seeking additional short-term working capital loans of about 7 billion rupees to fund operations. The airline has also been looking to raise equity.
20/12/11 Reuters/IBN Live

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Categories: Kingfisher Dec 2011