Kingfisher Airlines to submit recap proposal to banks soon
14 Dec 2011
Bangalore: Kingfisher Airlines will submit a ''fully documented'' recapitalisation proposal to the State Bank of India, the lead bank of a 13-member consortium of lender banks before the end of the week. The financially embattled airline had asked SBI Caps to assess its business and recapitalisation needs.
Apart from this assessment of its capital needs, the airline has also promised to the consortium that it would pay up instalment/interest of at least two months to the banks by 19 December, according to banking sources.
According to market reports, the airline has sought a short-term working capital funding of about Rs500 crore from the banks.
If Kingfisher manages to pay the two instalments next week, it could avert being classified as a non-performing asset.
The 13-bank consortium has a total exposure of around Rs7,000 crore to Kingfisher. Over Rs4,000 crore of the total exposure of lenders are in the form of term loans.
Lender-banks include ICICI Bank, Axis Bank, IDBI Bank, Punjab National Bank, Bank of Baroda, Bank of India, UCO Bank, Oriental Bank of Commerce and State Bank of Mysore.
