More trouble to Kingfisher Airlines; Banks oppose bailout

New Delhi, Nov 12: The bankers on Saturday (today) expressed unwillingness to provide financial assistance to cash-strapped Kingfisher Airlines by arguing that the promoters first need to infuse capital.

Meanwhile, lenders led by the State Bank of India said that they are not in a position to help airlines and claimed that cash-stapped airlines did not fufill all its commitments it had undertaken when a debt restructuring was done in last December.

Civil Aviation Minister Vayalar Ravi had said that the government might speak to banks for Kingfisher Airlines, but a debt recast like what was done for Air India was not possible.

Earlier, on Friday (Nov 11) shares of Kingfisher Airlines fell by over 19 percent to an all-time low in the early hours, before recovering some ground, as the cash-strapped company continued to face turbulence after it cancelled 30 more flights on Nov 10.

OneIndia News