Debt-laden Kingfisher Airlines (KFA) may approach the corporate debt restructuring (CDR) cell in the next two-three weeks as part of a turnaround plan, its promoter Vijay Mallya indicated.
On Thursday, the 17-bank consortium rejected Mallya’s request to provide a “lifeline” of Rs 200 crore to get all the “grounded aircraft” back into operation.
Banks were not in favour of the support, as they do not want to do anything on a “piecemeal” basis, it is learnt.
Mallya is also understood to have told bankers’ at a meeting in Bangalore that two-three investors had shown interest in the airline and the process of due-diligence was on.
SBICaps roped in
SBICaps has been roped in by Kingfisher to chart out a roadmap for capital infusion and make a reference yet again to the CDR cell.
This would be the second time that Kingfisher will approach the CDR. Its earlier attempt failed as the promoter could not bring in the desired equity funds for the package to sail through.
Bankers’ view
Bankers wanted credible proof of further equity infusion into the airline before committing more funds, sources said.
While seeking the Rs 200-crore lifeline, Mallya is understood to have told the bankers that promoter funds of Rs 1,154 crore had been infused into the airline since April 2012 for running day-to-day operations.
This was the first meeting that the bank consortium had with Mallya after the FDI policy in aviation was amended by the Government.
Interestingly, senior management of SBI, which led the consortium, was not present in the meeting. This led to speculation that Kingfisher’s attempts to once again approach the CDR cell may have the tacit support of SBI, which has the largest exposure among the 17 banks.
Other brands
The issue of Mallya bringing other Kingfisher brands to charge was also discussed, but no commitment was made from Mallya on this front, sources added.
The value of Kingfisher Airlines brand, which was estimated at about Rs 4,100 crore in 2010, has now come down to about Rs 3,008 crore, which has made the bankers jittery.
On its part, SBI has now completed the valuation of two non-core assets that are currently charged as collateral – Kingfisher House at Mumbai and the promoter’s villa at Goa. The valuation is now at about Rs 100 crore for both the properties put together, not much different from the earlier anticipated value.