Mumbai: The Sahara group will give a loan of more than Rs 2.5 billion to cash-strapped Kingfisher Airlines, to help the carrier continue operations, a daily newspaper reported on Saturday, citing sources.
Kingfisher, India's third largest airline by market share, has been struggling to raise funds to continue operations and repay debt.
The carrier, majority-owned by Vijay Mallya controlled UB group, has a debt of about Rs 65 billion and its creditors have asked the airline to raise at least USD 160 million in equity.
"We neither confirm nor deny speculation," Ravi Nedungadi, group chief financial officer and president of UB Group, was quoted as saying in the report.
Early this year, the Sahara group invested USD 100 million in Force India for a 42.5 percent stake and now co-owns the Formula One motor racing team with Kingfisher Airlines Chairman Vijay Mallya.
First Published: Saturday, December 17, 2011, 15:31