Kingfisher to recast Rs 6k-cr debt by next month

Bangalore: Vijay Mallya-led Kingfisher Airlines is expected to finalise the restructuring of its Rs 6,000-crore debt in a month. The development comes ahead of the carrier’s plans to raise $250 million through a global depository receipts (GDR) issue.
“The Reserve Bank has allowed banks to the debt. We are working with a consortium of banks to restructure the entire debt. It should be finalised by next month,” said , CMD, Kingfisher Airlines, at the company’s annual general meeting (AGM) on Thursday.
Mr Mallya said that, of the total debt, 30% will be converted into equity capital by the banks. There is an additional window of Rs900 crore that will also be provided by banks. The has to be repaid in nine years and has a two-year moratorium, along with seven years of easy . It carries an interest of 11%.
UB Holdings will also provide a loan of Rs 735 crore, which will be converted into equity. Earlier this year, Kingfisher had hired management consultancy firm Seabury Aviation & Aerospace to help improve its financial and operational performance.
01/10/10 Sobia Khan/Economic Times

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Categories: Kingfisher Oct 2010