Mumbai: Vijay Mallya needs to double the settlement offer he's made to the 17-lender group that's seeking repayment of more than Rs 9,000 crore in dues stemming from loans made to Kingfisher Airlines, the grounded carrier founded by him.
The Rs 4,000-crore offer presented in the Supreme Court last week isn't good enough in the view of the banks, said two people familiar with discussions among lenders on Saturday.
The confidential proposal included payment of Rs 2,000 crore by September and the rest subject to conditions. The bankers have to respond to the proposal at the next Supreme Court hearing scheduled for April 7. "Lenders have decided that they want a minimum of Rs 4,900 crore to be paid upfront, which is the principal loan amount. Further, they would demand interest component as well," said one of those cited above.
"Most importantly, we also want cash on the table and we do not want to operate as their recovery agent,'' said the person. Much of the proposal is strewn with caveats, raising doubts about whether the assets will actually yield the amounts stated, said the bankers, who didn't want to be named.
04/04/16 Sangita Mehta/Economic Times
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The Rs 4,000-crore offer presented in the Supreme Court last week isn't good enough in the view of the banks, said two people familiar with discussions among lenders on Saturday.
The confidential proposal included payment of Rs 2,000 crore by September and the rest subject to conditions. The bankers have to respond to the proposal at the next Supreme Court hearing scheduled for April 7. "Lenders have decided that they want a minimum of Rs 4,900 crore to be paid upfront, which is the principal loan amount. Further, they would demand interest component as well," said one of those cited above.
"Most importantly, we also want cash on the table and we do not want to operate as their recovery agent,'' said the person. Much of the proposal is strewn with caveats, raising doubts about whether the assets will actually yield the amounts stated, said the bankers, who didn't want to be named.
04/04/16 Sangita Mehta/Economic Times
