Deccan to raise Rs 1,000 cr debt as equity plans falter

Bangalore: Vijay Mallya-led Deccan Aviation, which operates Simplifly Deccan, is raising around Rs 1,000 crore as debt from financial institutions with adverse stock market conditions delaying the airline’s plans to raise Rs 1,600 crore in the form of equity.
Sources said Deccan Aviation, soon to be renamed Kingfisher Airlines, has tied up a Rs 500-crore five-year term loan with a two-year moratorium from ICICI Bank. The company is in discussions with other financial institutions to raise another Rs 500 crore.
“We have a bank line ready for Rs 500 crore, and are looking at raising a similar amount. This will be enough to meet operational costs over the next 12-15 months,” a source told ET.
The company’s equity-linked fund-raising plan is facing a delay because of adverse market conditions. Recent media reports have suggested that Jet Airways, too, was postponing its proposed $400-million rights issue till markets recover.
23/04/08 Boby Kurian/Economic Times

To Read the News in full at Source, Click the Headline

Categories: Deccan Apr 2008, Kingfisher Apr 2008