Lenders to meet Kingfisher management on Tuesday: SBI

Bankers to the financially-hitKingfisher Airlines have not yet taken a decision on restructuring its debt,while SBI on Sunday  said that thelenders will meet early next week to take stock of the situation.

"On Tuesday, SBI and other lenders are meeting with theKingfisher Airlines (KFA) management in Mumbai. Bankers want more informationon their (KFA 's) fleet, equity, continuation of fuel supply...Banks can come inas lenders not promoter. We will respond how it unfolds," said Pratip Chaudhuri,Chairman of SBI, which leads the 13-bank consortium that has lent toKingfisher.

He, however, supported KFA chairman Vijay Mallya's view onallowing foreign direct investment in the aviation sector.

"Unless another airline joins in, we don't see much ofvalue being added to KFA... They (KFA) have said that they are waiting forgovernment to relax norms on aviation policy. There is clear indication thatKFA wants to induct foreign airline as equity partner," Chaudhuri toldreporters on the sidelines of an Assocham event here.

He said lenders have asked KFA to bring Rs 800 crore as theequity, of which the company said that Rs 400 crore has already been arranged.

On being asked whether that was a pre-condition before thedebt restructuring, he said, "We want to see that money (Rs 400 crore)coming in. That has to be simultaneous."

Kingfisher is looking for additional working capital to tideover its severe cash crunch. It approached lender-banks for a reappraisal ofworking capital requirements following a surge in price of fuel in recentmonths.

After the first round of meeting on Saturday, the banks haveasked the airline promoters to put more equity into the venture and discloseadditional financial details to them.