Kingfisher promoters may convert loans into equity

Mumbai: Promoters of Kingfisher Airlines might convert Rs 1,500 crore they lent to the airline into equity, chief executive Sanjay Aggarwal told news agency Dow Jones on Wednesday.
The UB Group-run Kingfisher Airlines is seeking fresh credit support to revive the airline following three successive loss-making seasons. Lenders are yet to approve Kingfisher's request for fresh funds, including working capital loans and guarantees, and have sought the promoters bring in equity to recapitalise the airline. The conversion of debt into equity will help fulfil the condition.
The airline expected the debt conversion as well as additional funding from external investors and more loans to help it raise $500-600 million (roughly Rs 2,500-3,000 crore) in six-eight weeks, Aggarwal said. The airline spokesperson did not respond to an SMS query sent by this paper. “We are in talks with several investors in India and overseas,” Aggarwal said. “Apart from that, our founders have 10 billion rupees (Rs 1,000 crore) in loans with the airline and another five billion rupees (Rs 500 crore) in optionally convertible debentures, which can be converted into equity," he said.
01/03/12 Business Standard

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Categories: Kingfisher Feb 2012