Kingfisher asked to infuse Rs 800 cr fresh equity
The airlines would on Tuesday file its financial results for the second quarter of 2011-12.
Mumbai: A crucial board meeting of Kingfisher airlines on Monday night finalised the financial results of the cash-strapped carrier which has been asked by its lenders to infuse Rs 800 crore worth of fresh equity.
The airlines would on Tuesday file its financial results for the second quarter of 2011-12 approved by the board which met for over 10 hours here.
Kingfisher chief Vijay Mallya will hold a press conference in Mumbai on Tuesday at 12 noon.
Monday's meeting is understood to have discussed various options of restructuring existing debt.
There was also speculation that a rejig of the management may take place but there was no official word on this from the airlines.
Bankers on Monday made it clear that Kingfisher's promoters will have to infuse Rs 800 crore worth of fresh equity if they are to consider a second restructuring of existing debt even as opposition mounted to any bailout of the private carrier.
The bankers have asked the troubled airline to come out with a 'credible' plan.
The lenders--a 13-bank consortium led by SBI, who were yet to decide on ways to soften the troubled airline's Rs 7057.08 crore debt burden, are due to meet Kingfisher management on Tuesday.
"Bankers want more information on their fleet, equity, continuation of fuel supply. Banks can come in as lenders not promoter. We will respond how it unfolds," said Pratip Chaudhuri, Chairman of SBI which leads the 13-bank consortium that has financed Kingfisher.
On whether the bank will consider making fresh advances to Kingfisher, SBI Managing Director Hemant Contractor said, "We have to be satisfied about the viability of the company. There is no point restructuring if the company's operations are not going to be viable."
"We have asked them to come up with some fresh funds if the banks are to at all consider their request for restructuring. We want to see more funds coming from the company itself...," Contractor said. SBI has the largest exposure to Kingfisher--Rs 1,400 crore--among the lenders.
Amid the debate over bailout for Kingfisher, SpiceJet chief Neil Mills said the government should not use taxpayers' money to revive a private sector company.
On his part, Mallya said he is not seeking taxpayers money.
"No bail out involving tax payers money. V want working capital management assistance." he said in his latest tweet.
The debt-ridden airline continued with flight cancellations for the eighth straight day. The airline did not operate at least 40 flights on Monday.
With Prime Minister Manmohan Singh saying that the government would consider ways and means to help his airline come out of the crisis, Mallya said in another tweet: " The Hon'ble PM is an economist and understands the importance of connectivity that goes together with economic growth. Why such debate (on bailout) then?"
He also criticised the media for using the term 'bailout' and making the matter "so sensational".
Amid the talk of Kingfisher seeking government assistance, Bajaj group patriarach Rahul Bajaj said on Sunday private sector should not be bailed out and "those who die must die". Opposition parties including BJP and CPI-M have opposed any bailout for the private airline.