KFA needs Rs 1,000-2,000 cr before seeking fresh loans: SBI
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KFA needs Rs 1,000-2,000 cr before seeking fresh loans: SBI

Last Updated: Tuesday, February 28, 2012, 22:20
 
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KFA needs Rs 1,000-2,000 cr before seeking fresh loans: SBI
Mumbai: Kingfisher Airlines (KFA) would need to arrange fresh equity of Rs 1,000-2,000 crore before seeking additional funds from banks, State Bank of India, the lead consortium lender to the carrier, said Tuesday.

"Anybody who comes in with the equity is welcome because it helps the company...that numbers are not yet firmed up, but Rs 1,000-2,000 crore is the amount that the airline needs, the kind of scale and the volumes they have, is the starting point," SBI Chairman Pratip Chaudhuri said in a TV interview.

"They (KFA) have not named any investors, but they are saying that they are in dialogue with multiple investors. Who finally comes in or who all come in would depend on the relative terms and where the buyer and seller both agree on a price," he said.

"So we are indifferent as to who would be the investor, we don't have any pick-and-choose policy that we like so and so and don't like so and so," he said.

KFA has been in financial mess and the loans given by banks have turned NPA (non-performing asset) for the past couple of months.

A consortium of 18 bankers, including 14 state-owned lenders and four private banks, have provided huge sums to the beleaguered airlines, which has a total debt of about Rs 7,057 crore and accumulated losses of about Rs 6,000 crore.

The company's net loss widened to Rs 444.26 crore for the quarter ended December 31, due to high fuel costs and weaker rupee, from Rs 253.69 crore in the October-December quarter of last fiscal.

The airlines suffered a loss of Rs 1,027 crore in 2010-11.

PTI



First Published: Tuesday, February 28, 2012, 22:20


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