Mumbai: Banks are likely to initiate recovery proceedings against the crisis-ridden Kingfisher Airlines following the suspension of its flying license by the Directorate General of Civil Aviation (DGCA).
They did not precipitate recovery action against the airline so far as there was a glimmer of hope that the promoter group would get foreign direct investment into the airline and reverse its declining fortunes.
However, with the DGCA suspending its flying license, banks are now left with a Hobson’s Choice (take it or leave it option), said an official with a bank which has lent money to the beleaguered airline.
A consortium of 17 banks, including State Bank of India, IDBI Bank, Bank of Baroda, and Bank of India, have an exposure of about Rs 7,000 crore to Kingfisher Air. SBI has said that it has fully provided for its exposure of about Rs 1,500 crore.
20/10/12 Business Line
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They did not precipitate recovery action against the airline so far as there was a glimmer of hope that the promoter group would get foreign direct investment into the airline and reverse its declining fortunes.
However, with the DGCA suspending its flying license, banks are now left with a Hobson’s Choice (take it or leave it option), said an official with a bank which has lent money to the beleaguered airline.
A consortium of 17 banks, including State Bank of India, IDBI Bank, Bank of Baroda, and Bank of India, have an exposure of about Rs 7,000 crore to Kingfisher Air. SBI has said that it has fully provided for its exposure of about Rs 1,500 crore.
20/10/12 Business Line
