Kingfisher promoter Vijay Mallya is ready to infuse funds, estimated to be in the region of Rs 425 crore, into the airline to restart operation in phased manner as and when DGCA gives the go-ahead.
"They have a plan for limited restart. They may start with certain number of flights, of say five aircraft, and go up within three to four months. They need Rs 425 crore for resuming the operations, which they will manage on their own," SBI Deputy Managing Director for mid-corporates Shyamal Acharya told reporters after the 2-hour meeting between 17-member consortium of lenders and the grounded airline here today.
Meanwhile, Kingfisher in a statement said, "We will restart operations in a phased manner and will provide funding ourselves. We have not asked the bank for any support."
"We have also shared full recapitalisation plan (with the lenders) which will be further discussed with a small designated group of bankers," the Vijay Mallya-promoted airline said.
However, an airline source told PTI in New Delhi that it will soon submit a revival plan to the regulator DGCA, which will pave the way for revoking of the suspension of flying licence, which it had lost on October 20.
Apart from Mallya, from the airline's side, the meeting was attended by UB Group chief financial officer Ravi Nedungadi and airline chief executive Sanjay Agarwal, while the 17-member lenders were represented by mid-level managers.
However, a PSU bank official who also attended the meeting said that as per the tentative plan, Mallya told lenders he can resume operations with five aircraft, which is mandatory for a scheduled operator licence, and it could be scaled up to 21 planes within six weeks.
"Mallya has not sought any fresh funding from lenders. Though he did not convey how he will manage the funds, he assured us that he has the resources for the same. He also did not name the investors/airlines that he is talks with for stake sale, but asserted that he will be able to rope in someone only after he resumes operations," Acharya told reporters.
SBI has exposure of Rs 1,500 crore to the Bangalore-based airline, which has turned a non-performing account since this January. So is the case with other 16 lenders who together had given Rs 5,500 crore to the airline.
Acharya, however, said the management did not give any timeline for implementing its revival plan, adding, "It is difficult to say when they will restart