Kingfisher needs Rs. 2,000 cr for revival: SBI chief

THIRUVANANTHAPURAM-- KERALA--10/01/2013:: Chairman of the State Bank Group Pratip Chaudhuri addressing a press conference in Thiruvananthapuram on Thursday.................Photo: S.Gopakumar

Kingfisher Airlines should infuse at least Rs 2,000 crore to restart its operations, said one of its lender State Bank of India (SBI)’s Chairman Pratip Chaudhuri.

SBI is the lead banker in the 17-lender consortium that extended Rs 7,000 crore loans to the now grounded Kingfisher Airlines. The state-run bank has an exposure of Rs 1,500 crore to the carrier. The debt has not been serviced since January, 2012.

However, Mr. Chaudhuri said that the bank is not contemplating any legal action against the carrier as the door for negotiations is still open.

“In order to restart operations, Kingfisher Airlines needs to infuse at least Rs 2,000 crore as capital. We are still holding talks with the company and following up also,” Mr. Chaudhuri told reporters here.

Mr. Chaudhuri said the bank was holding talks with the carrier every week.

If necessary, some buildings and non-core assets might be disposed, he said.

Kingfisher is saddled with mounting losses and debts. It has been grounded since October 1 following strike by pilots over non-payment of salaries. The airline’s licence has also been temporarily suspended and aviation regulator DGCA has told the airline that it will be restored only when it submits a revival plan.

As per the revival plan submitted to DGCA last year, Kingfisher had said it would require about Rs 652 crore over the next 12 months for running its operations.