Lenders eye UB Group money in next week's KFA meet: Sources

Show me the money! That's what lenders of debt-laden Kingfisher Airlines want at this point of time. With buzz of a possible stake sale gathering steam, all eyes are now on what kind of a recapitalization plan KFA presents at the much-awaited meeting between the management and lenders next week. CNBC-TV18's Kritika Saxena reports.

KFA has a debt of over Rs 7,000 crore, with SBI having an exposure Rs 1,500 crore. Sources tell CNBC-TV18 there will be detailed recapitalisation and revival plan presented by KFA at the meet. There will a demarcation of how much the lenders will get from UB Group and from other prospective investors. So far there hasn't been any clarity on this aspect.

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However, lenders cannot bank on the prospective investors that could be coming in because those talks haven't really gone into final stages yet. The important clarity sought will be exactly how much the UB Group will be paying towards KFA's loan.

"They (Kingfisher management) need to act to their top speed and there is a consortium meeting scheduled for next week. So we are not putting any deadlines but we are again putting this point to the fore that things need to be done on a very urgent basis. And this Diageo deal that affects USL, so we cannot infer that automatically that brings in money to KFA. That the company has to disclose and tell us what their plans are," SBI chairman Pratip Chaudhuri told reporters today.

As far as the investment is concerned, CNBC-TV18 understands, the KFA management will be presenting a plan as to the exact details that have been submitted to private equity lenders and prospective investors. CNBC-TV18 had reported that TPG was one of the players. Aside from that, there is also a possible investment coming from sale of non-core assets.