KFA restructuring by Q1FY13; Mallya to clear bk dues by Mar

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KFA restructuring by Q1FY13; Mallya to clear bk dues by Mar

SBI Capital submitted Kingfisher Airline's report on the viability of the airline to its lenders. Sources say that the ailing carrier's viability report received the in-principal nod from bank lenders.

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SBI Capital submitted Kingfisher Airline's viability report of the airline to lenders. Sources say that the ailing carrier's viability report received an in-principal nod from bank lenders.

KFA's lenders will head back to their respective boards to place before them and discuss the report in detail before they take a call on a new restructuring package.

Sources say Vijay Mallya proposes to clear banks' overdues by March end. Sources say the new restructuring package for KFA is likely to be implemented by Q1FY13.

Sources say the viability report suggests a long-term loan worth Rs 1,000 crore with a working capital loan of Rs 440 crore and equity infusion of Rs 1,500 crore.

Sources say that KFA's lenders will take a final call on the new debt restructuring package only by the end of next week.

Kingfisher chairman Vijay Mallya who met with lenders says he had a comprehensive meeting with his 'potential' saviours and is hopeful of a positive result.

Today was a crucial day for KFA as the lenders meeting would decide the future course of Kingfisher 's debt restructuring efforts.

The lenders deliberated on the technical and the financial viability reports which have been submitted by the consultant and SBI Capital. Lenders have been insisting on these reports before they take a final call on fresh funding to Kingfisher.

The beleaguered airline requires an additional working capital of around Rs 2,300 crore. But it is understood that lenders will insist on additional equity infusion by the promoters of Kingfisher before they take a final call.

In the last quarter, some banks including SBI had classified Kingfisher as non-performing asset (NPA). In fact, SBI had also part sold its stake in Kingfisher.

In the context of all this, one needs to wait and watch to see whether the lenders will agree to give fresh funding to Kingfisher and what will be the new restructuring package that will be decided.

Chelsea Saldanha
chelsea.saldanha@network18online.com