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Jan 19, 2013, 04.45 PM IST | Source: CNBC-TV18

KFA stays grounded on unclear source of revival funds

CNBC-TV18's Gopika Gopakumar reports that that KFA meeting with lenders on Friday failed to take off as the promised source of funds for revival of the airline remained unclear

Gopika Gopakumar

Correspondent, CNBC-TV18

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In the latest episode in the Kingfisher Airlines (KFA) saga, the airline management has failed to provide any clarity on a revival plan to the consortium of lenders as the meeting between the consortium of lenders and KFA management on Friday turned out to be another failed attempt to revive the company, reports CNBC-TV18's Gopika Gopakumar.

The meeting between the core group of lenders and the Kingfisher management ended on an inconclusive note on Friday. The airline management failed to submit a concrete revival plan and was unable to give any signs of hope to the lenders on plans for the repayment of  its overdues.

The lenders have been seeking repayment of Rs 800-1,000 crore in dues from the company. However, at Friday's meeting the company claimed to have arranged around Rs 300-400 crore of funding to restart operations. But the source of the finds still remains unclear. This is a part of Vijya Mallya’s promise to the lenders and the DGCA that he will infuse Rs 650 crore into the company to restart operations.

Bankers on the other hand are discussing and mulling the enforcement of  a security. However, they are clearly divided with one section of bankers wanting to kickstart a recovery process immediately with another wanting to go slow and give more time to the airline.

So the ball is in the court of the 19-lender consortium to reach a consensus and decide the future course of action on Kingfisher.

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