Vijay Mallya owned Kingfisher Airlines (KFA) failed to assure its lenders with any 'concrete' solution for restructuring of debt in a meeting held on Thursday in Bangalore. The consortium of banks now decided to hold a meeting by the end of October without any participation from the airline company. Bankers have been asking for an equity infusion as a part of recast scheme for the company's total loans of around Rs 7,000 crore.
Restructuring is the process when a borrower fails to repay its loan in time and asks for some relaxation of original terms and conditions.
"Nothing concrete has come out of the meeting. The option of bringing money from United Spirits (a group company) to KFA is also ruled out. That is considered to be overleveraged. Diageo would not be routing funds to KFA through that window.
27/09/12 Saikat Das/moneycontrol.com
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Restructuring is the process when a borrower fails to repay its loan in time and asks for some relaxation of original terms and conditions.
"Nothing concrete has come out of the meeting. The option of bringing money from United Spirits (a group company) to KFA is also ruled out. That is considered to be overleveraged. Diageo would not be routing funds to KFA through that window.
27/09/12 Saikat Das/moneycontrol.com
