Turning down a request for Rs 200 working loan by Kingfisher, the SBI-led lenders consortium on Thursday asked SBI Capitals to chalk out a fresh revival plan for the cash-strapped airline in the next 2-3 weeks.
Kingfisher Chairman Vijay Mallya made a presentation in a meeting with lenders at Bangalore headquarters this afternoon, the first such meeting after the Government’s policy decision allowing foreign airlines to invest in domestic carriers.
According to lenders, Mallya did not offer any concrete revival plan as he could not commit on equity infusion by promoters.
An official from a public sector bank said the lenders turned down a request from Mallya for an immediate working capital loan of Rs 200 crore. Since this January, the airline has not been servicing its Rs 7,000 crore bank debt.
The official said that the lenders have asked SBI Capitals to make a new revival plan, the third one, for the airline in the next two-three weeks.
Though the company suggested a second debt restructuring, nothing was finalised, a source said.
When asked whether banks are open to a second CDR in two years, the source said that will depend on the SBI Caps proposal.
The meeting comes amidst talks of the airline talking to prospective foreign airlines to offload its stake.
At the last meeting on September 3 in Mumbai, the bankers had demanded that Mallya himself should make the revival plan and today’s meeting is the result of that.
This is the third time that SBI Caps has been asked to prepare a rejig exercise for the airline. In 2010, it had made a debt recast plan for the airline and in November that year, its Rs 6,500 crore worth loan was recast. Earlier this, SBI Caps was asked to make another revival plan.
Kingfisher shares on Thursday climbed 8.03 per cent to close at Rs 16.96 on the BSE, after touching an intra-day high of Rs 17.18 -- the highest level in a month.
NSE, BSE seek clarification
The National Stock Exchange and the BSE have sought clarifications from Kingfisher Airlines on reports that the carrier is in talks with foreign entities and domestic investors for stake sale.
Both bourses in separate notices on Thursday said they are awaiting the response from Kingfisher Airlines.
According to NSE, the media had reports that Kingfisher Airlines is in talks with foreign carriers as well as domestic investors to sell a stake.
“The Exchange, in order to verify the accuracy or otherwise of the information reported in the media and to inform the market place so that the interest of the investors is safeguarded, had written to the company,” it said.
The BSE has also sought clarifications regarding stake sale from Kingfisher Airlines.
“The Exchange, in order to verify certain news articles appearing in the various news papers/websites/television channels and also to inform the members/investors with regard to the accuracy of the news articles, had sought clarification from the company (Kingfisher Airlines),” the bourse said in a separate notice.
On Wednesday, Kingfisher Airlines chairman Vijay Mallya had said the carrier was in talks with foreign airlines.
However, he did not provide details citing “privacy and confidentiality” reasons.
Shares of the company today climbed 8.03 per cent to close at Rs 16.96 on the BSE, after touching an intra-day high of Rs 17.18 -- its highest level in a month.
The stock had gained 9 per cent yesterday as well, after Mallya said the air carrier is in talks with foreign airlines for possible stake sale.
In NSE too, shares of Kingfisher jumped about 8.60 per cent to close today at Rs 17.05.
The carrier, which is deep in the red, is in talks with its lenders to thrash out revival plan. Kingfisher Airlines owes over Rs 7,000 crore to 17 banks in the long-term debt and has accumulated losses of around Rs 8,000 crore.
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