State Bank of India (SBI) has sent Kingfisher Airlines a legal notice to recover its loans,bankers said on Tuesday. The airline can either suggest an out-of-court settlement or take legal recourse,in which case bankers will move the Debt Recovery Tribunal,a banker explained.
Although the lenders have sold shares of United Spirits and Mangalore Chemicals and Fertilisers,banks are still not confident of recovering their entire loans from Kingfisher. It looks like we will have to invoke the corporate guarantees given by United Breweries Holdings to recover the loans, a banker with direct knowledge of the development said.
Kingfisher owes over Rs 7,000 crore to a consortium of 17 lenders led by SBI which has the maximum exposure of Rs 1,800 crore.