Lenders to control Kingfisher earnings

Banks will take control of the cash flow of Kingfisher Airlines - a harsh step that lenders rarely take to protect their exposure. They will put in place a mechanism where the airline's earnings will flow into one bank account that will be closely tracked to avert loan defaults. The decision was taken by the lenders at a hurriedly called meeting last week as the Vijay Mallyapromoted airline hit the headlines after it cancelled 200 flights and sought government help. At present, Kingfisher operates similar accounts, better known as escrow, with some foreign banks that are not its lenders. The company's earnings are parked in these accounts for servicing loans and payment of bills. 

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