Trying to help revive Kingfisher: SBI

Tags: News
State Bank of India, the lead banker in the 17-lenders consortium that extended Rs 7,000 crore loans to the now grounded Kingfisher Airlines, today said the banks are "trying to do everything to find an amicable solution" to the carrier's financial troubles.

The SBI comment comes a week after the expiry of deadline that the lenders had set to the airline management to come up with a revival plan, that includes a $1 billion capital infusion.

Kingfisher is a good company with a high brand value and lenders are trying to do everything to see that an amicable solution is found, SBI Managing Director and Chief Financial Officer Diwakar Gupta told reporters on the sidelines of a PwC event here.

After the regulator DGCA suspended the airline's flying licence on October 19, SBI Chairman Pratip Chaudhuri had set a November 30 deadline to the airline management to infuse at least $1 billion in fresh capital as part of the revival exercise for the banks to consider lending afresh or recasting the existing loans.

SBI has an exposure of Rs 1,500 crore to the Bangalore based airline, which has not been serviced since January this year.

Launched in May 2005, the airline has not reported a single penny in profit and has bank debt over Rs 7,000 crore and unpaid interest thereon since January, apart from over Rs 1,000 crore in vendor and tax arrears.

It also has accumulated losses of nearly Rs 10,000 crore, apart from the salary dues of the past seven months.

Labour unrest towards the end of September led to the airline suspending operations from October 1 and on 19th of the same month, the regulator DGCA had suspended its flying licence.

EDITORIAL OF THE DAY

  • Annual reports make sense only if accountable governance is in place

    It’s a sign of a lack of imagination to expect an annual report by a party in power to pull out some impressive performance given the complex nature

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Amita Sharma

Political rhetoric makes for counter poetry

Poetic flourishes flavour politics. Ghalib and Hafez flowed profusely to ...

Zehra Naqvi

Watch your words, for they can kill

You must’ve heard the ph­rase ‘if looks could kill’. Ever ...

Dharmendra Khandal

Biodiversity day has come and gone. Yet again

Every year on May 22, world celebrates international biodiversity day. ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture