Mallya to infuse Rs 425 cr into Kingfisher: SBI

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ENS Economic Bureau: Mumbai, Dec 18 2012, 02:02 IST

Coming out with a revival plan for Kingfisher Airlines, Vijay Mallya, chairman UB Group, has told bankers that he will infuse an equity of Rs 425 crore in order to have a limited restart of the operations, the timeline of which will depend on clearances from Directorate General of Civil Aviation (DGCA).

The consortium of bankers, led by State Bank of India (SBI), is not against another restructuring of the loan if they are satisfied with the details of the restart plan. In a meeting with its lenders in Mumbai on Monday, Mallya laid out his plans for the airline and said that he was not looking for funds from the banks.

“They have a plan for a limited restart,” said Shyamal Acharya, deputy managing director, SBI. “For the limited restart they feel that they need Rs 425 crore which they will manage themselves and they are working with DGCA on the restart.” While the DGCA requires at least five aircraft for an airline to start operations, Acharya said that they may start with a certain number and go up within 3-4 months. The banking consortium has also formed a small group of bankers (SBI, BoI, BoB, PNB and IDBI) to discuss the details of the limited restart plan with the airline.

“If the limited restart takes place as he discussed, and if the small group of bankers is satisfied with the details of that restart plan then we are not averse for a restructuring,” said Acharya after the bankers

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Kingfisher Airlines gears up for stake sale Kingfisher Airlines looking for solution,no need to panic: SBIVijay Mallya to infuse Rs 425 cr into Kingfisher Airlines, says SBI SBI rules out further funding for Kingfisher

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Willful default

Sachin | 18-Dec-2012Reply | Forward

Wollfl defaults by indin promoters s becoming rampant as are rapes in New Delhi and Haryana! Both have the same symptoms and cure is the same for both crimes! Lack of law enforcement is encouraging criminals to engage in these two crimes and the solution is simple - castrate and hang the rapits in public hole put the anagements who willfully default behind bars for 10 years! I assure you, you will not see crimes of these sort repeated agin!