SBI asks Kingfisher to raise fresh equity before debt recast

Mumbai, Nov 14 (PTI) State Bank of India, which has the largest exposure to India's crisis-ridden Kingfisher Airlines, on Monday said it has asked the private airliner to raise fresh equity to the tune of Rupees 8 to 10 billion (about USD 160 to 200 million) if the banks are to consider a second restructuring of existing debt or extend fresh advances. On whether the bank will consider making fresh advances to Kingfisher, the Managing Director of India's largest public sector bank, Hemant Contractor said, "We have to be satisfied about the viability of the company. There is no point restructuring if the company's operations are not going to be viable. "We have asked them to come up with some fresh funds if the banks are to at all consider their request for restructuring. We want to see more funds coming from the company itself...." The amount that the carrier should raise is about Rs 8 to 10 billion, Contractor told reporters on the sidelines of the WEF-CII organised India Economic Summit here. When asked whether banks have asked the airline to sell some of its assets to reduce its debt of over Rs 70 billion (USD 1.4 bn approx), Contractor said, "One thing that is being discussed is selling some of its assets. If they do, it is good or they would have to find some other means." He also informed that SBI has Rs 14 billion (about USD 280 mn) exposure to the airline and that is a standard asset as of now. He was quick to add, "If the restructuring is successful, we will be able to maintain the current status." PTI