Mumbai: State Bank of India, the leader of the consortium of banks that have lent to the grounded Kingfisher Airlines, on Wednesday said the banks are trying to do everything possible to find an amicable solution to the carrier’s financial troubles.
“They (KFA) have created a brand value, they are a good company and we are trying to do everything so that an amicable solution to the problem is found,” said Diwakar Gupta, Managing Director and Chief Financial Officer, SBI, on the sidelines of a PwC event.
The Bangalore-based airline owes about Rs 7,000 crore to a consortium of 17 banks. KFA owes about Rs 1,500 crore to SBI. The cash-strapped airline has accumulated losses of nearly Rs 10,000 crore.
SBI Chairman Pratip Chaudhuri had asked the airline management to infuse at least $1 billion by November 30 for reviving the airline. If this had come through, banks would have considered lending afresh or recasting their existing loans to KFA.
05/12/12 Business Line
