SBI can't decide alone
on debt restructuring of Kingfisher Airlines
India's largest lender the State Bank of India (SBI) alone
cannot take a call on the debt restructuring of the cash-starved private
carrier Kingfisher Airlines Ltd, CNBC TV-18 reported, citing SBI Chairman
Pratip Chaudhuri said.
Meanwhile, media reports Wednesday said that Kingfisher
Airlines will submit a 'fully documented' recapitalization proposal to SBI,
which has the largest exposure to the airline, before the end of the week. The
company has mandated SBI Capital Markets Ltd, a part of SBI, to assess its
business and recapitalization needs.
According to a media report, Kingfisher has asked the
lenders to provide for a short-term working capital requirement of about Rs 5
billion.
SBI, which has the largest exposure of around Rs 14.58
billion to the ailing carrier, owned 5.7% stake in Kingfisher as on quarter
ended September 30.
Earlier, this year, the airline restructured its debt
through conversion of about a third of its debt into shares and issuing them to
lenders and founder companies.
Currently, Kingfisher -- the third largest private carrier
of India by market share -- has a total outstanding loan liability of about Rs
64.19 billion.
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