Lenders likely to consider asset sale in Kingfisher

Mumbai: Even as lenders decided to meet later this week to consider invoking securities and guarantees against the loans given to Kingfisher Airlines, LKP Finance, a Mumbai-based non-banking finance company, acquired 16.48 per cent equity stake in the airline following the conversion of optionally convertible debentures (OCDs) into equity shares.
LKP Finance had recently acquired 2.8 crore 8 per cent OCDs in the airline. This has been converted into 13.32 crore shares, giving it a significant stake of 16.48 per cent. At Rs 100 per OCD, the original investment of LKP could be around Rs 280 crore. “It is not known whether this is purely an investment or a warehousing deal,” said a market source.
03/07/12 Indian Express

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Categories: Kingfisher Jul 2012