Kingfisher, bankers meet inconclusive

Mumbai, Jan. 18:  

Lenders want the beleaguered Kingfisher Airlines to clear a part of its overdues before considering any support for its revival plan.

The airline owes about Rs 7,500 crore to a consortium of banks led by State Bank of India. Of this overdue, loan servicing payments of the airline alone amount to over Rs 2,000 crore, said a banker on condition of anonymity.

A consortium meeting will be held in a week to 10 days time to consider the way forward on their exposure, including possible recovery measures to be initiated.

The lenders’ meet with the management of Kingfisher Airlines remained inconclusive on Friday as the airline failed to submit a revival plan to repay its dues.

Incidentally, the airline promoter and Member of Parliament, Vijay Mallya, in a recent communication to employees, had indicated that Kingfisher Airlines would take to the skies in a phased manner during the summer schedule.

For this, the airline needs funding of around Rs 650 crore which was committed to be provided by the UB Group and associates, Mallya had mentioned.

http://www.thehindubusinessline.com/todays-paper/tp-money-banking/kingfisher-bankers-meet-inconclusive/article4320515.ece