ICICI Bank has sold its entire Rs 430-crore debt exposure in Kingfisher Airlines (KFA) to a debt fund of Srei Venture Capital (SVCL), the fund management arm of Kolkata-based Srei Infrastructure Finance. The loan includes collateral comprised of shares of UB Group, which is why the bank was able to recover its full debt exposure to the cash-strapped airline. Other banks will not be able to follow suit without such collateral, without selling at distressed prices. The banks continue to hope that the government opens up the aviation sector to foreign direct investment but this has fallen to the wayside
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