Vijay Mallya-run Kingfisher Airlines is understood to be finalising a deal to get working capital loan of over Rs 2,000 crore from the country's top public sector bank State Bank India. It is learned that purpose of this borrowing is to clear fuel bills.
The carrier, which has a total outstanding of over Rs 785 crore to public sector oil companies is looking to service the dues through the loan from SBI, according to industry sources.
"Kingfisher Airlines is in very advanced stages of getting the loan from SBI, which could be over Rs 2,000 crore," a source added.
However, Kingfisher Airlines did not reply media queries on the issue.
"Fund raising is an ongoing process and because we are bound by confidentiality and non-disclosure agreements, it will be inappropriate to offer any comment at this stage," the spokesperson was quoted as saying by Indian Media.
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