Lenders trying everything to find amicable solution to KFA’s financial woes

Lenders trying everything to find amicable solution to KFA’s financial woesState Bank of India (SBI)-led consortium of lenders that have lent to Vijay Mallya's grounded Kingfisher Airlines now wants an amicable solution to the debt-laden carrier's financial woes.

Earlier, SBI had said that Kingfisher Airlines' management should infuse at least $1 billion by the end of November to revive the carrier before seeking fresh lending, but the management has so far failed to do that.

Showing a new ray of hope the struggling carrier, Diwakar Gupta, managing director & chief financial officer of SBI, said on Wednesday that they were now trying everything possible to find a cordial solution to help the carrier come out of its financial troubles.

Speaking to reporters, on the sidelines of the CFO summit organised by accounting & consultancy giant PwC, Mr. Gupta said, "They (KFA) have created a brand value, they are a good company and we are trying to do everything so that an amicable solution to the problem is found."

The Bangalore-based airline owes about Rs 7,000 crore to a consortium of 17 banks. KFA owes about Rs 1,500 crore to SBI. The cash-strapped airline has accumulated losses of nearly Rs 10,000 crore.

Speaking at the CFO summit, Mr. Gupta also revealed that the SBI was expecting the government to infuse nearly Rs 4,000 crore into the government-run bank during the current financial year that would boost its capital base to more than 13 per cent.