Mumbai, Feb 13 (TruthDive) : Kingfisher Airlines flying again seems to have hit a rough patch with 17 banks deciding to recall the Rs 7200 crore loan they had given. This decision will be taken within ten days and revenue proceedings would be started.
Banks led by SBI met several times with Kingfisher Airlines officials but no concrete revival plan was offered except that the owner Vijay Mallya was in talks with some West Asian airlines for investment. It also talked about infusing money of Rs 450 crore if banks lend more money. The banks refused and airline was stuck. The so called FDI investment does not seem to be coming while Jet Airways-Etihad deal is ready to be signed.
The bankers finally met yesterday and decided to call back the loans they gave to the airlines since they felt that they had given enough time but now they were running out of patience. The banks who loaned the money will now convene the director board meeting within ten days to officially decide and legal action to recover the money will start.
According to bankers, the chances of recovering their full money is not possible. Around 20% of the money can be recovered. Anticipating such a move Mallya met Union Law minister Ashwani Kumar. The airlines grounded since October had a meeting in December with bankers. Two more meetings were held. All the deadlines are now exhausted. Mallya stalled the pilots’ move to file a winding up petition to get their unpaid wages.
Kingfisher Airlines owes to Airport Authority due to which the lessors of the aircraft could not take it back. Oil firms and other vendors are yet to be paid. For the grounded period from October-December 2012 , it reported Rs 700 crore loss which auditors said could be higher. Banks have already termed the loan account as non-performing assets since interest has not been paid.