The much-anticipated meeting between the management of the crippled Kingfisher Airlines and a consortium of 17 banks, which have a combined exposure of over Rs. 7,500 crore to the ailing airline, on Thursday failed to make any headway.
The meeting, held here at the State Bank of India headquarters, was attended by most of the lenders and the airlines’ Chief Executive Officer Sanjay Aggarwal and Chief Financial Officer H.G. Raghunath. Though the airline made a presentation, they could not commit on fresh fund infusion, according to the bankers.
Lenders’ sources said the meeting could not make any headway as the company could not commit on fresh fund infusion. They said they have appointed HDFC Securities to value two of the already pledged properties of Kingfisher – the Airline House in suburban Andheri with a reported market value of Rs. 90 crore and a villa in Goa worth Rs. 30 crore.
According to banking sources, the existing 17 lenders also discussed the loan sell-off by ICICI Bank (worth Rs. 430 crore) early this week to a hedge fund run by SREI Infra Finances. Bankers, who have over 20 percent stake in the airlines following the last corporate debt restructuring, also said they may meet again next month.
At the last meeting of the consortium in March, the bankers insisted on the promoters bringing in at least 50 percent of the fresh funding requirement (around Rs. 2,000 crore) as a precondition for any new advances to the airline, after it stopped servicing its loan from January.