Lenders to meet Kingfisher management on Tuesday: SBI

KOLKATA: Bankers to the financially-hit Kingfisher Airlines have not yet taken a decision on restructuring its debt, while SBI today said that the lenders will meet early next week to take stock of the situation.

"On Tuesday, SBI and other lenders are meeting with the Kingfisher Airlines (KFA) management in Mumbai. Bankers want more information on their (KFA's) fleet, equity, continuation of fuel supply...Banks can come in as lenders not promoter. We will respond how it unfolds," said Pratip Chaudhuri, Chairman of SBI, which leads the 13-bank consortium that has lent to Kingfisher.

He, however, supported KFA chairman Vijay Mallya's view on allowing foreign direct investment in the aviation sector.

"Unless another airline joins in, we don't see much of value being added to KFA... They (KFA) have said that they are waiting for government to relax norms on aviation policy. There is clear indication that KFA wants to induct foreign airline as equity partner," Chaudhuri told reporters on the sidelines of an Assocham event here.

He said lenders have asked KFA to bring Rs 800 crore as the equity, of which the company said that Rs 400 crore has already been arranged.

On being asked whether that was a pre-condition before the debt restructuring, he said, "We want to see that money (Rs 400 crore) coming in. That has to be simultaneous."

Kingfisher is looking for additional working capital to tide over its severe cash crunch. It approached lender-banks for a reappraisal of working capital requirements following a surge in price of fuel in recent months.

After the first round of meeting yesterday, the banks have asked the airline promoters to put more equity into the venture and disclose additional financial details to them.