Lenders to infuse Rs 1k cr into KFA: Sources

Banks are likely to infuse around Rs 1000 crore equity in Kingfisher Airlines, say CNBC-TV18 sources. Banks have also agreed to give a working capital loan of Rs 400 crore to the loss-laden airline.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead Masteryourmoney Earnings
moneycontrol.com

Home » News » Business

Feb 21, 2012, 07.27 PM | Source: Moneycontrol.com

Lenders to infuse Rs 1k cr into KFA: Sources

Banks are likely to infuse around Rs 1000 crore equity in Kingfisher Airlines, say CNBC-TV18 sources. Banks have also agreed to give a working capital loan of Rs 400 crore to the loss-laden airline.

Like this story, share it with millions of investors on M3

Lenders to infuse Rs 1k cr into KFA: Sources

Banks are likely to infuse around Rs 1000 crore equity in Kingfisher Airlines, say CNBC-TV18 sources. Banks have also agreed to give a working capital loan of Rs 400 crore to the loss-laden airline.

Post Your Comments

Share Cancel

Lenders to infuse Rs 1k cr into KFA: Sources
Banks are likely to infuse around Rs 1000 crore equity in Kingfisher Airlines , say CNBC-TV18 sources. Banks have also agreed to give a working capital loan of Rs 400 crore to the loss-laden airline.

Sources in the know say that the airline’s lenders will take a final call on the new debt restructuring package, a little later.

After much deliberation on the technical and the financial viability reports prepared by SBI Cap, it is understood that lenders have taken this decision.
The carrier which posted losses of Rs 444 in the December quarter requires an additional working capital of around Rs 2,300 crore to keep afloat. But it is learnt that lenders will insist on additional equity infusion by the promoters of Kingfisher before they take a final call.

In the last quarter, some banks including SBI had classified Kingfisher as non-performing asset (NPA). In fact, SBI had also part sold its stake in Kingfisher.
United Breweries (Holding), its subsidiaries Kingfisher Finvest India, United Overseas and Vijay Mallya held 58.61% of the airline. A consortium of 13 lenders owned another 23.27% of Kingfisher shares following a debt recast this year

Did You Read: Kingfisher Airlines CEO to appear before DGCA


 

Ads by Google

Buy, Hold, Sell ? Hear it first on M3
Lenders to infuse Rs 1k cr into KFA: Sources

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login