After a long delay, it has been decided by the lenders of the ailing Kingfisher Airlines that it will begin the recovery process of the Rs. 7,500 crore loan which was given to the airline. One of the top officials from the State Bank Of India said that they have decided to recall the loans given to Kingfisher Airlines.
The official also said that each bank board will decide their own future course of action. The meeting was attended by the airline management which included CEO Sanjay Agarwal and UB Group President and CFO Ravi Nedungadi.
The recent decision has been taken as the airline chief Vijay Mallya assured his staff that he would clear 11 months worth of pending salary. The airline chief has also assured staff that the company would be restarting operations in the forthcoming summer season.
Shyamlal Acharya, the deputy managing director of SBI said, “No progress has been made so far by the airline management to restart operations and the bankers feel that enough time has been given to the company”. Acharya also said that the banks will have to take a 'hair cut', which means the difference between the market value of the collateral and value assessed by the lender. The airline has been grounded since October 1, 2012.