The State Bank of India-led consortium of bankers will most probably reject the Rs.4,000-crore loan payment offer from Vijay Mallya. Last week, the liquor baron offered a loan payment of Rs. 4,000 crore to banks by September 2016 to settle the Kingfisher Airlines’ dues.
His lawyers informed the Supreme court that more Rs.2,000 crore would be paid, if Kingfisher wins a lawsuit seeking damages from a firm that makes plane engines. But, the consortium believes that he can afford to pay more.
The total dues of the Kingfisher Airlines is nearly Rs.9,000 crore. The principal amount is Rs.6,903 crore.
On the condition of anonymity, a top banker from a public sector bank said, “A settlement is arrived on mutually-agreed terms. Banks look into the capacity of a borrower when a settlement is contemplated. We would have even settled for less if Mr. Mallya does not have the capacity. But that is not the case.”
Also read: Vijay Mallya offers loan payment of Rs. 4,000 crore by September
Mr. Mallya’s offer was discussed by bankers over the weekend. They, however, did not respond yet in a formal way. On 7 April 2016 is the next hearing in the case. Adverse public opinion do not give a position to take a haircut in setting the dues, said the bankers.
- Sumana
