UB Group borrows Rs 400 crore from SICOM for Kingfisher

New Delhi: SICOM, the non-banking finance company partly owned by the Maharashtra government, is understood to have emerged as a source of some of the funds being raised by the UB Group to support Kingfisher Airlines.
Four companies linked to Kingfisher and the UB Group have collectively borrowed Rs 400 crore from SICOM, in which the state government holds 49% equity. The loans, raised in July-end, assume significance against State Bank of India Chairman Pratip Chaudhuri's statement that Kingfisher has arranged Rs 400 crore out of the Rs 800 crore banks have asked the promoter companies to bring in.
Meanwhile, UB Group President and CFO Ravi Nedungadi told ET that Kingfisher's parent, UB Holdings, has raised Rs 763-crore unsecured loans for Kingfisher since the beginning of the year. Neither SICOM nor the UB Group confirmed whether the loan from SICOM was part of the Rs 763 crore raised to support the airline.
"UB Holdings, the principal promoter of Kingfisher Airlines, has facilitated funding of Rs 763 crore till date since the beginning of the year," said Nedungadi.
15/11/11 Avinash Celestine/Economic Times

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Categories: Kingfisher Nov 2011