Sahara set to bail out Kingfisher Airlines with over Rs 250 crore loan

Mumbai: What's grabbing attention of the informed few now is the friendship brewing among two of the biggest ambassadors of the good times, parabanking boss Subrata Roy and alco-bev baron Vijay Mallya.
When Sahara India chief, Subrata Roy teamed up with United Breweries honcho, Vijay Mallya, to come in as a partner in the latter's Formula One racing team, Force India, India Inc took note of it as two sports enthusiasts joining hands.
It's another thing that Mallya needed some cash support, which came in the form of Roy's $100 million infusion for a 42.5% stake in the team. In a sport where overall costs of making a formula one car can cost around Rs 100 crore, it was timely. The F1 races that followed in Greater Noida would have given them a further opportunity to bond.
Now, the relationship has just moved up a notch. Sources say Subrata Roy has decided to bail out Mallya's ailing Kingfisher Airlines with a loan said to be upwards of Rs 250 crore. As they say a friend in need is a friend in deed.
Both the companies are, however, tightlipped about the new found bonhomie of their bosses. "We neither confirm nor deny speculation," said Ravi Nedungadi, group CFO & president, UB Group. An email to Sahara on the issue did not elicit any response.
17/12/11 Shubham Mukherjee/Times of India

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Categories: Kingfisher Dec 2011