Kingfisher's lenders to meet soon to decide future course
Posted on: 03:53 AM IST Oct 24, 2012
New Delhi: Kingfisher's bankers, which have over Rs 7,500 crore locked in the ailing airline, will soon meet to chart out the future course of action, said PNB Chairman and Managing Director KR Kamath. "The bankers will sit and decide what is the situation now and what they will do," Kamath said.
Punjab National Bank (PNB) is part of the SBI-led consortium of 17 banks that has exposure in the cash-strapped airline. "The leader (State Bank of India) will convene the meeting," Kamath said. Last week, the Directorate General of Civil Aviation (DGCA) suspended licence of beleaguered airline following its failure to come up with a viable plan for financial and operational revival.
The liquor baron Vijay Mallya-promoted carrier has been saddled with a loss of Rs 8,000 crore and a debt burden of another over Rs 7,524 crore, a large part of which it has not serviced since January. The airline currently has only 10 operational aircraft compared to 66 a year ago. In November 2010, the banks had restructured Kingfisher loans worth Rs 6,500 crore.
The airline is under a lockout since October one and resultant suspension of entire operations. The airline has suffered losses of Rs 1,609 crore in 2008-09, Rs 1,647 crore in 2009-10, Rs 1,027 crore in 2010-11 and Rs 732 crore in 2011-12. Kingfisher was issued an airline licence on August 26, 2003. It was actually issued to Air Deccan which was bought over by Kingfisher. It is valid till December 31 this year.