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karan
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Who is Vijay Mallya? - Page 7 Empty Re: Who is Vijay Mallya?

Tue Jan 15, 2019 7:29 pm
Otherwise, there was no reason why Mallya is personally held responsible for the repayment of the loan (Rs 9,000 crore now including the accrued interest amount).
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karan
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Tue Jan 15, 2019 7:29 pm
There are bigger stressed borrowers (companies) around,” the banker said, giving examples like Bhushan Steel and Winsome Diamonds.

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karan
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Tue Jan 15, 2019 7:29 pm
The Kingfisher Airline, grounded in 2012, never made profit in its eight years of operations.
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karan
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Tue Jan 15, 2019 7:29 pm
When Mallya approached the group of lenders for further lending in 2010, there was serious differences of opinion among the group of senior bankers in SBI, and other banks in the consortium, on why should they lend to the airline again.
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karan
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Tue Jan 15, 2019 7:29 pm
But, the majority decision was to take the big risk again and lend to Mallya.
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karan
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Tue Jan 15, 2019 7:30 pm
“It was, in a way, throwing good money after bad (since the KFA exposure was already stressed),” the banker quoted earlier said.
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karan
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Tue Jan 15, 2019 7:30 pm
“But, if we didn’t do that at that point, the exposure till then would have gone bad instantly.
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karan
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Tue Jan 15, 2019 7:30 pm
No one wanted that to happen. There was no option before us,” said the official.
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karan
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Tue Jan 15, 2019 7:30 pm
But, everyone knew what was in the store, though no one said anything in the discussion room. “The mood was partly that of helplessness and partly optimism,” the banker said.
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karan
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Who is Vijay Mallya? - Page 7 Empty Re: Who is Vijay Mallya?

Tue Jan 15, 2019 7:30 pm
Bankers were optimistic because Mallya himself was hopeful of turning around the airline, even though the entire aviation industry was groping in darkness. Ironically, however, despite Mallya’s optimism, everyone saw the writing on the wall.
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karan
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Tue Jan 15, 2019 7:31 pm
In March 2012, Kingsiher halted its international operations to Europe and Asian countries and cut down local flights to 110-125 a day with a fleet of 20 planes from 340 flights earlier to save money. By October 2012, the bird flapped its wings for the last time. Since then, it hasn’t seen the skies
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karan
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Tue Jan 15, 2019 7:31 pm
Kingfisher, once the second-largest airline in India, had little chances of resuming its operations since the necessary regulatory approvals were not in sight and its balance sheet was bleeding.
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karan
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Tue Jan 15, 2019 7:31 pm
The company’s losses had widened to Rs 2,142 crore for its fiscal fourth quarter ending in March 2013, compared with a net loss of Rs 1,150 crores a year earlier.
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karan
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Tue Jan 15, 2019 7:31 pm
The accumulated losses as of March 2013 stood at a whopping Rs 16,023 crore.
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karan
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Tue Jan 15, 2019 7:32 pm
ts dues had mounted to over Rs 15,000 –Rs 16,000 crore to banks, airports and others and its flying licences expired at the end of last year.
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karan
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Tue Jan 15, 2019 7:32 pm
The death bells were begining to ring. In his desperation to revive the airline, Mallya twice submitted revival plans to the aviation regulator, with parent UB Group committing initial funding, but with no luck. In its eight-year life, the airline never made profit even once.
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karan
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Tue Jan 15, 2019 7:32 pm
Mallya remained optimistic though not to lose the airline’s licence. “We have not submitted an ambitious plan.
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karan
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Tue Jan 15, 2019 7:32 pm
We have submitted a holding plan," Mallya told reporters, while the government wasn’t convinced.
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karan
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Tue Jan 15, 2019 7:32 pm
"The problem is in the last two to three months, he's given so many plans and he's not adhered to any of them," the then Aviation Minister Ajit Singh told reporters in New Delhi.
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karan
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Tue Jan 15, 2019 7:33 pm
Panic was beginning to set in in the banking industry, especially state-run banks.
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karan
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Tue Jan 15, 2019 7:33 pm
which were the majority in the banking consortium. After all, banks had to answer a lot to shareholders not just for further lending to Mallya in 2010,
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karan
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Tue Jan 15, 2019 7:33 pm
For offering generous loan recast facilities and converting the debt of Kingfisher to equity at a huge premium.
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karan
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Tue Jan 15, 2019 7:33 pm
In early 2011, the bank consortium including SBI had converted debt amounting to Rs 1,400 crore into equity at a 60 percent premium to the prevailing market price
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karan
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Tue Jan 15, 2019 7:34 pm
Going by the stock exchange data, on March 31, there was preferential allotment to SBI and ICICI Bank due for conversion of compulsorily convertible preference shares into equity shares at a price of Rs 64.48 each. Remember, on that day, KFA shares closed at Rs 39.90 on the BSE.
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karan
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Who is Vijay Mallya? - Page 7 Empty Re: Who is Vijay Mallya?

Tue Jan 15, 2019 7:34 pm
"Within a few months, the share value had eroded so much that banks were put in a difficult position,” said the banker quoted earlier. Kingfisher last traded at Rs 1.36 on the BSE on 22 June 2015.
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