Wednesday, July 24, 2013

Banks to step up recovery of dues from Kingfisher Airlines

New Delhi:  Banks are planning to tighten the noose around the grounded Kingfisher Airlines to recover their dues as the mandatory 90-day notice period under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act got over earlier this month.
But, what may offer respite to the promoters led by Vijay Mallya is the split among banks over declaring them a willful defaulter — a tag that will choke credit flow to promoter group companies for up to five years. "We haven't declared them a willful defaulter, nor do we intend to do so immediately," said a top-level executive at a leading public sector bank, which has a significant exposure to Kingfisher.
An executive at SBI, which is the lead lender in the consortium comprising public sector banks, told TOI that the Sarfaesi notice period expired earlier this month and banks were finalizing steps on recovering dues that add up to over Rs 7,000 crore.
24/07/13 Times of India