New Delhi, Sept 25:
The consortium of 17 banks that have funded debt-laden Kingfisher Airlines Ltd (KFA) will meet in Bangalore on Thursday.
The meeting assumes significance, as this would be the first one after the Government revised foreign direct investment norms in aviation and allowed foreign carriers to pick up to 49 per cent stake in domestic scheduled airlines.
There are indications that Kingfisher promoter, Vijay Mallya, will make a presentation to the bankers’ on the turnaround strategy for the ailing private carrier.
Banks are hoping that Mallya would come up with proposals that would lead to equity infusion into the airline.
Either the promoter himself could bring in equity funds or bring an investor into the airline. There is already some talk of UB Group shedding stake in Mangalore Chemicals & Fertilisers to raise funds for reviving KFA. Foreign investors may also be roped in other Group companies such as United Spirits to bolster the finances of the promoters.
The 17-bank consortium has an exposure of about Rs 7,000 crore with KFA.
Bankers’ meeting earlier this month had yielded little results as Mallya did not attend the meeting. The consortium wanted Mallya himself to attend the next meeting on September 27, to present the future course of action.
SBI has already initiated the exercise of valuing the non-core assets of Kingfisher House at Mumbai and promoter’s villa at Goa.
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