Companies & Sectors
Kingfisher lenders ask Mallya to make fresh revival plan by September

`The lenders led by SBI have asked Vijay Mallya to make a presentation himself at their next meeting and provide business plan, details and values of securities structure

Mumbai: The meeting of Kingfisher Airlines' lenders in Mumbai on Wednesday remained inconclusive as banks have sought more details from the management on the revival plan by September, when they will meet again, reports PTI.


"We have requested more detailed kind of presentations for us to figure out how their (Kingfisher Airlines) business is moving forward, what is their securities structure and what are the kind of things happening inside the system which is adding value to the security," a banker told reporters after the meeting.


"Once we understand clearly, which we couldn't today, we could probably take a call," he said, adding, "we have also requested chairman Vijay Mallya himself to come and make a presentation at the next meeting likely in September."


The financially crippled airline has 17 lenders led by the State Bank of India (SBI), which has an exposure of Rs1,500 crore to the airline, which has not been servicing its nearly Rs7,000 crore long-term bank loans since January. It has also not been paying salaries to its employees, or statutory taxes.


The banker further said, "We want to know what are the things they want to do to repay our loans, in the short term, medium and long term. There should be clarity."


Apart from this huge debt, the airline also has an accumulated loss of over Rs8,000 crore. Since its launch in May 2005, the airline has not made money.


The meeting was significant in wake of a recent report by industry analyst Centre for Asia Pacific Aviation (CAPA) which cast doubts on continuation of airline's operations if it is unable to infuse $600 million immediately.


The last meeting of the lenders took place in July, wherein they appointed HDFC Securities to value two pledged properties-the Kingfisher House in Mumbai and the Kingfisher Villa in Goa, which together have a value of around Rs180 crore, with a view to dispose of as part of recovery measures.


"Kingfisher faces the prospect of an operational shutdown, possibly temporarily, to allow it to restructure and re-organise. A viable turnaround is unrealistic without a significant recapitalisation of the airline," CAPA said in its report on the industry's performance in the first quarter of the current fiscal, last week.


According to the agency, restructuring of the airline will require the banks to take a significant hit as they have a huge exposure to the carrier.


Suzlon subsidiary REpower receives 332 mw contract from Germany

REPower would supply 54 offshore turbines to Germany's RWE Innogy's open sea project in German North Sea

Mumbai: Suzlon Group subsidiary REpower Systems on Wednesday said that it has received a 332.1-mw contract from RWE Innogy of Germany to supply 54 turbines for its wind farm project, reports PTI.


"REpower has signed a contract with RWE Innogy to supply 54 6M offshore turbines, each with 6.15 mw of rated power, for the Innogy Nordsee 1 wind farm," the company said in a statement. The company has not mentioned the revenue from the contract.


"This contract is an important signal for the German offshore wind industry. We are delighted that RWE Innogy, our customer for many years, has yet again selected REpower's established technology for this important project," REpower chief executive Andreas Nauen said.


The project, with a total capacity of 332 MW, based in the German North Sea, is one of the world's biggest open-sea projects with turbines in the multi-megawatt class, he said.


"Till date, REpower 6M is the most powerful wind turbine ever to be installed on the high seas anywhere in the world. The turbine is produced in Bremerhaven and from there the components can be transported directly to their destination," Nauen said.


In 2009, three prototypes of the REpower 6M were installed onshore at the Ellhft wind farm, near the German-Danish border. Few months back, the first turbines installed offshore were erected for the Belgian Thornton Bank wind project, the release said.


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