Banks want clarity on Kingfisher revival plans

Mumbai: Banks want Kingfisher Airlines (KFA) chairman Vijay Mallya to make a presentation by this month-end on his plans to revive the ailing private carrier. The resolution of KFA’s debt has been eluding bankers for nearly a year now due to the inability of the promoter group to pitch in with equity funding.
Banks don’t want to take further exposure to the airline unless the equity funding comes through. Bankers want to know the airline’s future course of action, including how equity will be infused and its plans to sell-off non-core assets. If no clarity emerges from the presentation banks may take a call on selling off non-core assets on their own, said a banker.
As many as 17 banks, led by State Bank of India, Bank of India, Bank of Baroda and Corporation Bank, have a collective loan exposure of more than Rs 7,000 crore to the carrier.
05/09/12 Business Line

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Categories: Kingfisher Sep 2012