Vijay Mallya's Kingfisher seeks 400 crore loan from SBI

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Kingfisher Airlines
Mumbai, Nov 19: Liquor baron and owner of Kingfisher Airlines, Vijay Mallya met Pratip Chaudhuri, chairman of State Bank of India for a short term loan of Rs 400 crore for his troubled airline.

Apart from meeting Pratip Chaudhuri, Mallya also met the top officials of other banks at the SBI headquarters, South Mumbai in regards to financial needs as to meet daily expenses such as salary payments.

Mallya said that his total debt requirement was Rs 2,200 crore.

"It may take about 15 days for SBI Caps to come up with a viability study and Kingfisher Airlines has made it clear that it needs funding immediately. Therefore, the airlines will have to quickly come up with their plans of infusing equity," said a bank official.

Banks which own 23% of Kingfisher airline and have lent Rs 7,000 crore approximately to the company want Mallya and the UB Group to bring equity before they lend more money.

"Before taking a further call on this matter, we first want to see that money (equity of Rs 400 crore) coming in.

Other creditors like oil companies and airport authorities are working out a schedule, and then we will sit with the company to understand how much more money it requires and what are the different sources. All the money need not necessarily come from banks," Chaudhuri had said in Kolkata.

"Kingfisher is behind schedule on lease rental payments to every leasing company," said an official of one of the leasing companies that have exposure to Kingfisher. He did not wish to be identified because of the sensitivity of the matter. "The most worrying part is that not all of our aircraft assets are in pristine condition," he added.

OneIndia News

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