SBI rules out further funding for Kingfisher

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fe Bureau: Mumbai, Dec 18 2012, 02:31 IST

exposure of R1,400 crore. IDBI Bank, with around R700 crore, Bank of India has R575 crore and Bank of Baroda has R530 crore, are other with sizable exposures. Earlier, SBI had announced a deadline by November 30, when the company would have to come up with a plan to bring in some equity. The meeting had gotten postponed then and lenders have finally met with the management now, said Acharya.

On November 9, Mallya’s United Spirits had signed a $2-billion deal with the Diageo group, in return for a sale of 53.4% in United Spirits , its flagship company. So, bankers had expected some promise of an equity infusion. “Till the time they do not require any further funding from the banking system, we are fine,” Acharya told reporters.

To restart ops in phases, says KFA

Kingfisher Airlines said on Monday it will "restart in a phased manner," with own funding, and will not seek banks' support.

Kingfisher, saddled with a debt load of $1.4 billion, has not flown since October, and is under immense pressure to raise equity fast to keep its licence intact.

"We have also shared a full recapitalisation plan which will be further discussed with a small designated group of bankers," Kingfisher said in a statement, after a meeting with its lenders.

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