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No second round of debt restructuring for Kingfisher by banks

SBI, the leader of the consortium, has an exposure of Rs1,457.78 crore in Kingfisher, followed by IDBI Bank (Rs727.63 crore), Punjab National Bank (Rs710.33 crore), Bank of India (Rs575.27 crore) and Bank of Baroda (Rs537.51), minister of state for finance Namo Narain Meena informed the Parliament

New Delhi: Banks have no plans to carry out a second round of debt restructuring of the ailing Kingfisher Airlines which has an outstanding loan of around Rs6,419 crore, reports PTI.

“State Bank of India, leader of the consortium (of 11 lenders to Kingfisher), has stated that at present, there is no plan,” minister of state for finance Namo Narain Meena said in a written reply in Lok Sabha.

He was replying to a question on whether lenders are planning to carry out a second round of restructuring of loans to help Kingfisher.

The minister further said the airline has a total outstanding loan liability of Rs6,419.60 crore, which include Rs9,730.37 crore provided to Kingfisher for non-fund based activities.

SBI, the minister said, has an exposure of Rs1,457.78 crore, followed by IDBI Bank (Rs727.63 crore), Punjab National Bank (Rs710.33 crore), Bank of India (Rs575.27 crore) and Bank of Baroda (Rs537.51).

The other lenders which have provided funds to the airlines include ICICI Bank, Central Bank of India, United Bank of India, UCO Bank, and Corporation Bank.

SBI has already exceeded the exposure limit of Rs1,436.1 crore in Kingfisher.

Of the total outstanding of Rs6,419.60 crore, Rs750.10 crore has been converted into cumulative redeemable preference shares and Rs553.10 crore as non-convertible cumulative redeemable preference shares to be redeemed after 12 years.

Mr Meena further said that Kingfisher is scheduled to start repaying loans to SBI from September 2012. “Servicing of interest is being done with some delay,” he added.

Giving details of the security given by Kingfisher Airlines, Mr Meena said the airlines’ chairman Vijay Mallya has given a personal guarantee of Rs248.97 crore, while United Breweries Holdings, which he heads, has provided a corporate guarantee of Rs1,601.43 crore.

In addition, Kingfisher has provided a pooled collateral security of Rs5,238.59 crore, which includes Kingfisher House in Mumbai, Kingfisher Villa (Goa), and hypothecation of helicopters.

The airline has also hypothecated the Kingfisher Brand which was valued at Rs4,111 crore by Global consultancy firm Grant Thornton.

Besides, the pledged securities include ground support and other equipment (Rs101.58 crore), computers (Rs22.43 crore), office equipment (Rs13.39 crore), furniture and fixtures (Rs33.35 crore) and an aircraft (Rs107.77 crore).

The figures were annexed with the minister’s written reply.

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