Business Today

Yet to hear from Kingfisher Airlines on revival plan: SBI

Kingfisher Airlines' lead lender State Bank of India recently said it has not yet heard from the company about its capital raising plans, even though the bankers-set November 30 deadline is fast approaching.

BT Online Bureau   Pune     Last Updated: November 26, 2012  | 17:12 IST

Kingfisher Airlines' lead lender State Bank of India recently said it has not yet heard from the company about its capital raising plans, even though the bankers-set November 30 deadline is fast approaching.

In an obvious reference to the United Spirit-Diageo deal earlier this month, Chaudhuri said there are reports relating to the group company, but that cannot be a basis for taking a view on the airline.

"Kingfisher as a company has not given us any information or visibility on capital infusion," SBI chairman Pratip Chaudhuri said on Saturday on the sidelines of the annual two-day banking summit 'Bancon 2012' in Pune.

FROM THE MAGAZINE:Kingfisher Airlines best off staying on the ground?

Chaudhuri had earlier categorically ruled out fresh funds to the airline, which has not been servicing its Rs 7,000-crore working capital and long-term loans taken from 17 banks since January this year.

Banks have been demanding that Kingfisher management pump in at least $1 billion of fresh equity.

Late last month, SBI set a November 30 deadline for Kingfisher Airline to bring in fresh capital and produce a comprehensive revival plan. But airline chairman Vijay Mallya said later that he had no knowledge about any such deadline.

On the day United Spirits sold majority stake to the English liquor major Diageo for over Rs 11,100 crore, Mallya had hinted that the proceeds would not be diverted to the troubled airline, saying "both businesses will be dealt with separately".

With inputs from PTI

Youtube
  • Print

  • COMMENT
BT-Story-Page-B.gif
A    A   A
close