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KFA flies higher on a likely Rs 1000 cr infusion from SBI
Kingfisher Airlines climbed 3% on news that its lenders might infuse Rs 1000 crore equity infusion into the ailing company. Though, there has been no official announcement on the same, sources say the development is likely by March.
Kingfisher Airlines climbed 3% on news that its lenders might infuse Rs 1000 crore equity infusion into the ailing company. Though, there has been no official announcement on the same, sources say the development is likely by March.
Banks have also agreed to give a working capital 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.However, State Bank of India along with a consortium of banks is working on the debt rejig for KFA and has not said said anything about this development to media.
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.
