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Kingfisher Airlines crisis: Vijay Mallya not aware of deadline set by lenders?

Kingfisher Airlines troubles don't seem to be ending any time soon with chairman Vijay Mallya saying he is not aware of any deadline given by bankers on recapitalisation of his troubled airline.

BT Online Bureau   New Delhi     Last Updated: November 14, 2012  | 13:18 IST

Kingfisher Airlines troubles don't seem to be ending any time soon with chairman Vijay Mallya saying he is not aware of any deadline given by bankers on recapitalisation of his troubled airline.

State Bank of India (SBI) Chairman Pratip Chaudhuri had on November 7 said: "Banks' consortium has done everything possible to make the company (Kingfisher) work. Only the company is not working... The management has to get capital. We have given time till November 30 that they should get capital otherwise the company will not fly..."

In reply, Mallya had, while announcing the deal between United Spirits and Diageo Plc last week, said: "I am not aware of any deadline given to Kingfisher by its bankers. I am sorry to say but we have not received any communication in this regard."

SBI is the lead bank to ailing Kingfisher Airlines, which has accumulated losses to nearly Rs 9,000 crore as on September 30, due to huge restructuring costs, prior-period tax payments, costs related to its heavy debt burden of about Rs 8,000 crore and disrupted operations.

Asserting that he along with his team is working to make the grounded carrier fly again, Mallya had said: "We are working towards a comprehensive rehabilitation plan, including recapitalisation of the airline."

While clarifying that the money coming in with the Diageo deal will not be used for Kingfisher Airlines' revival, Mallya had said: "Each individual companies are public entities. So the the Kingfisher Airlines issues will be resolved by the the Kingfisher Airlines and UB Holdings... It would be unfortunate if you try to link this transaction with the airline. Lets not cross contaminate everything and interrelate everything."

With inputs from PTI

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