Mumbai: Vijay Mallya, the chairman of grounded carrier Kingfisher Airlines, has offered banks to pay the principal amount that he owes but not the interest component and he has approached the bankers seeking a meeting, which may take place during the next few days.
The principal amount that KFA owes to the banks is between Rs 4,500 crore to Rs 5,000 crore, a banker, who is familiar with the deal said on condition of anonymity.
However, bankers are in no mood to settle for less and they may ask for the interest component also, at least a significant a part of it. The interest component is upward of Rs 2,000 crore and public sector banks have kept the Finance Ministry in the loop regarding the issue.
A Kingfisher Airlines spokesperson declined comment.
According to a public notice issued by SBI Caps recently, the amount due by the troubled airline to the consortium of banks lead by SBI, is about Rs 6,963 crore, as on 31 January, 2014, excluding interest rate which will be levied at 15.5 per cent per annum. SBI Caps – the merchant banking arm of State Bank of India – the country’s largest lender – has put KFA’s asset that are in Mumbai Chhatrapati Shivaji International Airport, for auctioning.
25/11/15 Manojit Saha/The Hindu
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The principal amount that KFA owes to the banks is between Rs 4,500 crore to Rs 5,000 crore, a banker, who is familiar with the deal said on condition of anonymity.
However, bankers are in no mood to settle for less and they may ask for the interest component also, at least a significant a part of it. The interest component is upward of Rs 2,000 crore and public sector banks have kept the Finance Ministry in the loop regarding the issue.
A Kingfisher Airlines spokesperson declined comment.
According to a public notice issued by SBI Caps recently, the amount due by the troubled airline to the consortium of banks lead by SBI, is about Rs 6,963 crore, as on 31 January, 2014, excluding interest rate which will be levied at 15.5 per cent per annum. SBI Caps – the merchant banking arm of State Bank of India – the country’s largest lender – has put KFA’s asset that are in Mumbai Chhatrapati Shivaji International Airport, for auctioning.
25/11/15 Manojit Saha/The Hindu
