Enough is enough: banks tell Kingfisher

February 14, 2013 09:47
 Enough is enough: banks tell Kingfisher

Kingfisher Airlines has been grounded completely and on several occasions it had failed to restart its operations. The debt incurred has not been cleared yet and stands around Rs 7500 cr. This money which was lent to Mallya was to restore the operations at the soonest. However, with the wind turning south, banks now decided it was high time that the loan be recalled since the restoration of operations seemed a farfetched idea.

Five banks led by SBI have attended a meeting and came to the decision of recalling loans after a two hour debate with representatives of KFA.  Earlier Mallya promised his employees that their salaries would be paid and that the operations would begin this summer. However, they were all fake promises though he claims that the process of restoration is underway.
The banks generally don’t go for drastic measures like selling the assets owned as collateral unless and until other measures like simple restructuring are not possible. The situation is now grimmer than ever for Mallya.

(AW- Anil)

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