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Lenders of Kingfisher to meet tommorow

Mumbai, Sep 4 (Truth Dive): Ahead of the AGM and after the board of directors report released yesterday evening, the consortium of lenders of Kingfisher Airlines (KFA) will meet here on Wednesday to discuss the future plans with their exposure to the Vijay Mallya promoted carrier.

Pratip Chaudhuri SBI Chairman told reporters here on the side-lines of a banking event that lenders and KFA will meet on Wednesday.

Over Rs 7,000 crore in advances from 17 banks led by SBI to the crippled carrier, which has not been paying its debt since January and not paying salaries from March, saw pilots and engineers strike work several times.

Centre for Asia Pacific aviation in its report said Kingfisher faces the prospect of a temporary operational shutdown, to allow it to restructure and re-organise. A recapitalisation of the airline is needed since viable turnaround is unrealistic without this move.

According to CAPA the agency, the banks will take a significant hit as they have a huge exposure to the ailing carrier, as they have a huge exposure to the ailing carrier.

Vijaya Mallaya report described the current situation of the company as operating on a “holding pattern” with limited operation, pending policy changes which are in the offing.

Mallya said this releasing the company’s Report of the Directors for the year 2011-12. When an airplane makes several mid-air turns, while waiting for a clearance to land or to avoid crashing with other aircraft the pilot is said to follow ‘holding pattern’.

Ahead of their Annual General Meeting on September 26, 2012 in Bangalore the report of the directors is part of the airline’s latest annual report, which was released to its shareholders yesterday evening.

Kingfisher had a net loss of Rs 2,328 crore in 2011-12, from Rs 1,027 crore in the previous year.

From Rs 6,306 crore a year ago, its total long-term borrowings stood at Rs 5,695 crore as on March 31, 2012. Besides, it had short-term borrowings was up from Rs 604 crore as on March 31, 2011 to Rs 2335 crore at the end of 2011-12.

‘Report of the Directors’ presented by Mallya said increase of fuel prices, rupee de-valuation, rising interest rate and continued downward pressure on returns, Kingfisher decided to downsize its operations in November 2011