Kingfisher appoints SBI Caps to restructure debt

New Delhi/Mumbai: Vijay Mallya-owned Kingfisher Airlines has appointed SBI Capital Markets (SBI Caps) to restructure part of the airline’s debt, which is around Rs 7,000 crore. The development comes ahead of the carrier’s plans to raise $100 million through global depository receipts (GDR) issue. “SBI Caps will submit a report soon,” a senior airline official said.
The official said that SBI Caps will engage multiple banks as part of the process leading to fund-raising.
SBI Caps will restructure Rs 500-600 crore debt in May itself, with a larger exercise to follow in the coming months. The airline would issue GDR to clear oil dues and other short-term loans.
The official spokesperson of the airline declined to comment on the issue.
Earlier this year, Kingfisher hired management consultancy firm Seabury Aviation & Aerospace to help improve its financial and operational performance.
The airline has been steadily losing market share in the domestic market. It is currently expanding its international operation and needs funds to sustain the same.
14/05/10 Nirbhay Kumar & Manisha Singhal/Economic Times

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Categories: Kingfisher May 2010