Kingfisher Airlines will submit a “fully documented” proposal to the State Bank of India, the lead bank of the 13-member consortium, before the end of the week. The airline has also committed to the consortium that it would pay up at least two months' instalment/interest to the banks by December 19.
The airline is reported to have asked for a short-term working capital funding of about Rs 500 crore from the banks, even though Vijay Mallya, Chairman, had indicated he needs Rs 700-800 crore in working capital.
By committing to pay a part of the instalment/interest by early next week, the company could possibly avert its account becoming a non-performing asset (NPA).
Kingfisher bank proposal expected this week
