Kingfisher Airlines' lenders have sought more details from the management on the
revival plan for the cash-strapped airline, after a meeting between the two sides on Wednesday remained inconclusive.
The lenders is expected to
meet Kingfisher management next within this month.
"We have requested more detailed presentations for us to figure out how their
(Kingfisher Airlines) business is moving forward , what is their securities structure and what are the kind of things happening inside the system which is adding value to the security," a banker said after the meeting.
"Once we understand clearly, which we couldn't today, we could probably take a call," he said, adding, "we have also requested
chairman Vijay Mallya himself to come and make a presentation at the next meeting likely in September."
The financially crippled airline has 17 lenders and has not been servicing its nearly Rs 7,000 crore long-term bank loans since January. It has also
not been paying salaries to its employees, or statutory taxes.
State Bank of India alone has an exposure of Rs 1,500 crore to the airline.
The banker further said: "We want to know
what are the things they want to do to repay our loans, in the short-term, medium- and long-term. There should be clarity."
Apart from this huge debt, the airline also has an accumulated loss of over Rs 8,000 crore. Since its launch in May 2005, the airline has not made money.
The meeting was significant in wake of a recent report by industry analyst Centre for Asia Pacific Aviation (CAPA) which cast doubts on continuation of airline's operations if it is unable to infuse $600 million immediately.
The last meeting of the lenders took place in July, wherein they appointed HDFC Securities to value two pledged properties-the Kingfisher House in Mumbai and the Kingfisher Villa in Goa - with a value of around Rs 180 crore together - with a view to dispose of as part of recovery measures.
"Kingfisher faces the
prospect of an operational shutdown, possibly temporarily, to allow it to restructure and re-organise. A viable turnaround is unrealistic without a significant recapitalisation of the airline," CAPA said in its report on the industry's performance in the first quarter of the current fiscal, last week.
According to the agency, restructuring of the airline will require the banks to take a significant hit as they have a huge exposure to the carrier.
With inputs from PTI
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