Promoters face Kingfisher Airlines exit if pledged shares sold
“While the shares are pledged with various banks and NBFCs, there is hardly any equity value left,” says Sonam Udasi, senior vice-president and head — research, IDBI Capital. “However, since the shares are pledged with a consortium of banks, any action will happen only after a consensus is reached. The latest development could also be a pressure tactic to make the promoters act,” he added.
Late on Tuesday, the consortium of banks led by State Bank of India (SBI) said it will initiate the process of recovering Rs 7,500-crore outstanding loans as the company failed to come up with any specific revival plan. has been grounded since October 1 last after a labour unrest broke out due to non-payment of salaries.
SBI has the maximum exposure with Rs 1,600 crore, followed by Punjab National Bank with Rs 800 crore, IDBI Bank Rs 800 crore, Bank of India Rs 650 crore and Bank of Baroda Rs 550 crore. All the 17 banks have provided for their exposure to the airline and declared them as bad loans. The airline has not serviced the loan since January 2012.
While the airline is sitting on a debt of over Rs 7,500 crore in bank loans, accumulated losses and unpaid salaries, taxes, and vendor dues amount to over 10,000 crore.
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