Kingfisher lenders say recovery last option
22 Oct 2012 12:34 AM GMT
Lenders to Kingfisher Airlines, whose combined exposure of nearly Rs 7,500 crore is at risk, have said they will go in for recovery measures only as the last resort and expressed hope that its promoters will be able to find an investor and resume operations.
Aviation regulator DGCA on Saturday suspended the licence of the financially-troubled airline.
‘At best, we will be able to recover just 10-15 per cent of our overall exposure if we were to monetise the pledged properties. So initiation of recovery measures will be our last recourse,’ a senior official of a city-based public sector lender said.
When contacted, SBI, which leads the consortium of 17 banks and has an exposure of over Rs 1,500 crore, said the airline was grounded for the past three weeks anyway and thus there is nothing new with the DGCA ordering suspension of its licence.
‘Though there is nothing new following the DGCA suspension, we are concerned as we have no control on these develoadded.  Â
Aviation regulator DGCA on Saturday suspended the licence of the financially-troubled airline.
‘At best, we will be able to recover just 10-15 per cent of our overall exposure if we were to monetise the pledged properties. So initiation of recovery measures will be our last recourse,’ a senior official of a city-based public sector lender said.
When contacted, SBI, which leads the consortium of 17 banks and has an exposure of over Rs 1,500 crore, said the airline was grounded for the past three weeks anyway and thus there is nothing new with the DGCA ordering suspension of its licence.
‘Though there is nothing new following the DGCA suspension, we are concerned as we have no control on these develoadded.  Â
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