This article was last updated on April 16, 2022
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The board of troubled carrier Kingfisher Airlines met Monday to take stock of mounting losses and chalk out possible ways to reduce its debt burden in order to keep the airline afloat. The marathon meeting ended inconclusively late last night.
Vijay Mallya, Chairman of Kingfisher Airlines Limited, is expected to give out details of the debt restructuring plan and ways of propping up the company’s finances today. The company may consider selling assets, converting loans into equity and preferential issue of equity to promoters – to bring down the over Rs. 7,000 crore debts the carrier owns to a consortium of banks.
Meanwhile, lenders to the debt laden airline will meet in Bangalore today to discuss if additional funding could be provided to the airline. The meeting was called by State Bank of India (SBI), leader of the consortium of 13 banks that have lent to the airline.
The lender banks, however, first want Kingfisher to raise fresh funds. SBI wants the carrier to raise at least Rs. 800-1,000 crore in equity before considering a second restructuring of existing debt or extend fresh advances. ICICI Bank, Punjab National Bank, Bank of Baroda and IDBI – other big lenders will be a part of the meeting.
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