Mumbai: Post Kingfisher Airlines fiasco, Indian banks are playing safe by asking airline companies to put more tangible collateral on the table. The Wadia group has offered a Rs 913 crore land in Thane, owned by a group company - Botanium Ltd, to its bankers to avail loan facilities.
Bank sources said the loss-making airline had offered a corporate guarantee from Botanium Ltd but the banks said more collateral should be offered especially in view of the Rs 7,000 crore loan default by Kingfisher Airlines.
When contacted, GoAir’s CFO Siddhartha Datta said GoAir is adequately funded for its requirements both at the present time and for the future to fuel its growth trajectory.
“GoAir has met all its financial obligations to Banks (interest and principal) and other creditors including payments to fuel companies, lessors, airport authority of India, employees and statutory dues,” he said.
29/03/13 Dev Chatterjee/Business Standard
