Kingfisher to get $47m loan from Sahara: Report
The Sahara group will give a loan of more than Rs 2.5 billion to cash-strapped Kingfisher Airlines, to help the carrier continue operations, the Times of India reported on Saturday, citing sources.
December 18, 2011 / 13:54 IST
The Sahara group will give a loan of more than Rs 2.5 billion to cash-strapped Kingfisher Airlines, to help the carrier continue operations, the Times of India reported on Saturday, citing sources.
Kingfisher, India's third largest airline by market share, has been struggling to raise funds to continue operations and repay debt.The carrier, majority-owned by Vijay Mallya controlled UB group, has a debt of about 65 billion rupees and its creditors have asked the airline to raise at least USD 160 million in equity."We neither confirm nor deny speculation," Ravi Nedungadi, group chief financial officer and president of UB Group, was quoted as saying in the report.Early this year, the Sahara group invested $100 million in Force India for a 42.5% stake and now co-owns the Formula One motor racing team with Kingfisher Airlines Chairman Vijay Mallya.Spokesmen for both Kingfisher Airlines and Sahara group declined to comment on the report when contacted by Reuters. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
