Mumbai: The Sahara group has lent Rs 750 crore to the struggling Kingfisher Airlines, a newspaper reported on Friday.
Subrata Roy has extended a helping hand by giving the loan to the cash strapped airlines; the newspaper said quoting three sources familiar with the development.
The deal, directly structured by Vijay Mallya & Subrata Roy was reportedly extended via an inter-corporate deposit (unsecured borrowing by corporates from other corporate entities registered under the Companies Act 1956.). The interest rate on the loan amount has not been made clear so far.
Debt-laden Kingfisher is scouting for funds and has a debt of about Rs 65 billion owed to a consortium of banks led by State Bank of India.
The airline aims to cut debt to Rs 37 billion through sale and lease-back of aircraft, sale of a property in Mumbai and conversion of rupee loans into foreign loans at a lower interest rate.
First Published: Friday, December 23, 2011, 17:54