This ad will auto close in 10 seconds

Kingfisher gets $163.5 mn in investment offers: Reports

Last Updated: Sunday, February 26, 2012 - 09:08

Mumbai: Debt-ladden Kingfisher Airlines Ltd has received recapitalisation offers worth 8 billion rupees from two Indian investors, an Indian newspaper said on Saturday, citing the carrier's Chairman Vijay Mallya.

The investors would get a combined 24 percent stake in the airline if the deal succeeds, the report said citing Mallya.

Desperately strapped for cash, Kingfisher stands on the brink of collapse after nearly a week of flight cancellations and resignations by dozens of its pilots.

Kingfisher has not turned a profit since it was founded in 2005 and is carrying a debt burden of at least USD 1.3 billion.

Its revenue has been in decline since the end of last year. Staff are not being paid and tax bills remain outstanding.

"There's a deal offer from two Indian investors to recapitalise. We have their termsheets," the report quoted Mallya as saying.

"They are large investors and I would leave it there."

Valued about USD 245.4 million by the stock market, shares in Kingfisher Airlines fell 4.35 percent on Friday to 24.20 rupees in a weak Mumbai market.

Bureau Report

First Published: Saturday, February 25, 2012 - 12:08
comments powered by Disqus