Mumbai/New Delhi: Liquor baron Vijay Mallya's $2.1 billion deal to sell a stake in United Spirits(UNSP.NS) could throw a lifeline to his grounded Kingfisher Airlines(KING.NS), although pulling the carrier back from the brink will not be easy.
The flamboyant "King of Good Times" is keeping his plans to himself for now. However, his decision to give up control of his group's flagship company as Kingfisher heads towards the point of no return suggests that he is unwilling to write off his airline business, bankers and industry analysts say.
The proceeds from Mallya's deal with Diageo Plc will not be enough in themselves to rescue the ailing airline, which has failed so far to find fresh investment to prop it up or a global carrier willing to play white knight.
It could still give him enough to make a piecemeal payment to his creditors and draw them back to the negotiating table for fresh loans and another restructuring of the airline's debt.
14/11/12 Reuters/Times of India
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The flamboyant "King of Good Times" is keeping his plans to himself for now. However, his decision to give up control of his group's flagship company as Kingfisher heads towards the point of no return suggests that he is unwilling to write off his airline business, bankers and industry analysts say.
The proceeds from Mallya's deal with Diageo Plc will not be enough in themselves to rescue the ailing airline, which has failed so far to find fresh investment to prop it up or a global carrier willing to play white knight.
It could still give him enough to make a piecemeal payment to his creditors and draw them back to the negotiating table for fresh loans and another restructuring of the airline's debt.
14/11/12 Reuters/Times of India
