Banks, Airports Authority of India turn heat on Kingfisher Airlines

New Delhi: Vijay Mallya-promoted Kingfisher Airlines is facing fresh pressure from lenders and airport authorities who are keen to protect their dues from the beleaguered private carrier.
Lenders are planning to meet later this week to discuss the "future course of action" but the chairmen of at least two large banks told TOI that they were keen that some of the securities and guarantees be invoked as there was little progress on the government's plan to amend the rules to let foreign airlines buy into Indian carriers.
The airline is yet to repay dues after some of the guarantees issued by banks were invoked by other agencies for non-payment over three months ago. As a result, banks, who have an exposure of over Rs 7,000 crore to the carrier, have classified the loan as a non-performing asset and have already set aside over Rs 1,000 crore to cover for a potential loss.
02/07/12 Saurabh Sinha & Sidhartha/Times of India

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Categories: airports Jul 2012, Kingfisher Jul 2012