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Banks accept KFA bailout blueprint by consultants

Cash-strapped Kingfisher Airlines (KFA), already battling mounting debts, has said that the consortium of banks that has given loans to the carrier have accepted "in principle" the viability study prepared by SBI Capital markets and independent consultants.

Updated on: Feb 19, 2012 09:28 PM IST
Hindustan Times | By , New Delhi
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Cash-strapped Kingfisher Airlines (KFA), already battling mounting debts, has said that the consortium of banks that has given loans to the carrier have accepted "in principle" the viability study prepared by SBI Capital markets and independent consultants.

HT Image
HT Image

KFA has made a fresh appeal for additional loans of $40 million to banks, sources said.

"We have had a good meeting with our consortium of banks who have accepted, in principle, the viability study prepared by SBI Capital markets and independent consultants," the airline said in a statement late Saturday. "Our request for additional working capital has been acknowledged by the consortium and is subject to individual bank approvals."

KFA, sources said, has been directed by lenders to reverse nearly Rs 100-crore guarantee commission paid to UB Holdings as a pre-condition to consider the second round of bailout.

The airline confirmed that its bank accounts had been attached by tax authorities and said it was trying to resolve the problem.

 
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