Cash-starved Kingfisher Airlines has reached out to banks yet again with a request for working capital. In a fresh letter to banks, liquor baron Vijay Mallya's airline has asked for further funding to keep the airline afloat. Bankers, though are not keen to extend any further funding to the airline.
In a meeting on February 17 with the consortium of banks that have lent to KFA, the airline had sought working capital of Rs 200 crore to fund its operations. But according to sources with direct knowledge of the development, only two banks have lent a total of `5 crore to the airline, while other banks have flatly refused to lend any further.
A consortium of about 18 banks headed by State Bank of India have lent over Rs 7000 crore to KFA, and most of them have already classified their exposure to the company as a non-performing asset.
29/03/12 Anirudha Ghosh/Economic Times
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