SBI rules out further funding for Kingfisher
KFA's licence is under suspension by the Directorate General of Civil Aviation and will be reviewed on December 21. “KFA is comfortable, hopeful and confident that there is no case for final cancellation of the license in their discussion with the DGCA,” Acharya said addressing reporters after the meeting.
The consortium has formed a smaller group consisting of the top five lenders including SBI, Bank of India, Bank of Baroda, Punjab National Bank and IDBI Bank, which will co-ordinate with the KFA management as it seeks to revive the airline. Vijay Mallya chairman, KFA, Sanjay Aggarwal, CEO, and Ravi Nedungadi, CFO, told lenders they were in discussions with a “foreign carrier” for a stake sale, though they did not disclose any further details, bankers said. According to various media reports, KFA is in talks with Abu Dhabi-based Etihad Airways for a stake sale.
Despite this plan, KFA's debt situation remains as it is and bankers are hopeful of receiving repayments on time, Acharya added. Of the R7,000 crore that Kingfisher owes to banks, State Bank of India (SBI) has the largest
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