Vijay Mallya: Kingfisher is looking for additional working capital to tide over its cash crunch
STATE BANK OF INDIA, which has the largest exposure to India`s crisis-ridden Kingfisher Airlines, said that it has asked the carrier to raise fresh equity to the tune of Rs 800-1,000 crore (£99 - £124 mn) if banks are to consider a second restructuring of existing debt or extend fresh advances.
On whether the bank will consider making fresh advances to Kingfisher, SBI Managing Director Hemant Contractor said, "We have to be satisfied about the viability of the company.
There is no point restructuring if the company`s operations are not going to be viable.
"We have asked them to come up with some fresh funds if the banks are to at all consider their request for restructuring. We want to see more funds coming from the company itself...."
The amount that the carrier should raise is about Rs 800-1,000 crore (£99 - £124 mn), Contractor told reporters on the sidelines of the WEF-CII organised India Economic Summit here.
When asked whether banks have asked the airline to sell some of its assets to reduce its debt of over Rs 7,000 crore (£871 mn), Contractor said, "One thing that is being discussed is selling some of its assets. If they do, it is good or they would have to find some other means."
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