On Friday, The chairman of Kingfisher’s airline, Vijay Mallya, had troubled to fight the battle on multiple fronts. In international market, Mallya is the business man, who compared with flamboyant British entrepreneur Richard Branson.
Though, his company is now going through tough time and facing some financial disaster. By putting all things in the right way, he has planned to raise a loan and met Pratip Chaudhuri, chairman of India’s largest bank SBI for a short-term loan of Rs 400 crore to meet working capital requirements like Pratip Chaudhuri, chairman of State Bank of India and to repossess 16 aircraft for delay in payment of rentals.
The bank enforced him for letters of credit and guarantees, which would raise the amount of capital by Rs 445 crore.
Banks, which lend up to 7000 crore to the company, had decided that if they want more loan, then Mallya and UB Group would bring in equity. In Kolkata, Chaudhari as a govt. Official cleared that before raising loan to airline, they would properly know the sources from where money can be coming in and how much amount is actually required to the company.
One of the leasing companies whose rental payment made by Kingfisher, said, “Kingfisher is behind schedule on lease rental payments to every leasing company. The most worrying part is that not all of our aircraft assets are in pristine condition,”