Logistics

Stake sale to foreign airline is only option to revive Kingfisher, say bankers

| | Updated on: Jan 18, 2012

The only way the beleaguered Kingfisher Airline can revive its fortunes is through stake sale to a foreign airline, as has been proposed by the Government, say bankers.

Banks unlikely to lend more

Banks, at least the major ones, which have large exposure to the company, are unlikely to lend further to the company.

An official from one of the banks that has lent to Kingfisher said, “Only banks which currently have no exposure to the airline may want to lend to it following equity infusion from a foreign airline. The big banks are not willing to lend anymore.

“Banks will give money only if there is some offer of a tangible security. There has to be a viable plan in place and total commitment from promoters,'' he said.

Loans

Kingfisher has been struggling to pay salaries and meet other expenses. It has fallen behind on servicing its bank loans.

Kingfisher has been classified as an NPA by some banks. It has already gone through one round of restructuring. It has an outstanding loan of over Rs 6,000 crore.

Published on March 12, 2018

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