Kingfisher pitches for Rs 670-cr short-term funding

Bangalore: SBI Caps, which was hired by Kingfisher Airlines to prepare a business proposal, has in its report pegged the company's short-term funding requirement at Rs 670 crore.
A banker belonging to the 13-bank consortium, which has lent to the airline, told Business Line that the funding requirement includes both working capital and non-fund-based requirements.
“Kingfisher Airlines has submitted its ‘fully documented' proposal, which SBI Caps has made with very orthodox assumptions and presumptions,” said the official.
For instance, the dollar-rupee parity has been assumed at Rs 52/dollar, and crude oil prices at $110/barrel, he pointed out.
However, the official said that banks will not make any additional funding “unless the bankers' critical amount is served by the company”. The critical amount is the amount that would save the account from becoming a non-performing asset (NPA).
“If the critical amount is not served, the system will automatically recognise it as an NPA by this quarter-end,” he added. The official also said that the company has already paid employee salaries, cleared statutory dues, and is buying fuel from the oil marketing companies (OMCs) on cash-and-carry basis.
17/12/11 Anjana Chandramouly/Business Line

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Categories: Kingfisher Dec 2011