This refers to two reports: “Mallya says no to loan on personal guarantee” and “Govt may not let Kingfisher to crash” (February 23). Vijay Mallya’s refusal to offer a personal guarantee to lenders may well be the final straw of the Kingfisher saga. Why is Mallya reluctant to give a personal guarantee? Has he already come to the conclusion that his business is no longer viable and doomed to fail in the long run? Moreover, Mallya has nothing to lose. The public sector and certain private lenders have a total exposure of over Rs 7,000 crore to the airline and he seems to be having the last laugh. What more is necessary for lenders as proof of non-viability when the promoter himself does not wish to offer his commitment by way of a personal guarantee?
If the government is anticipating a turnaround in the economy that will eventually brighten the prospects of the aviation sector, why are lenders not optimistic? If things appear to be looking up for the economy, it is for promoters to take a call and not the government.
K V Rao Bangalore
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