HEADLINES:
September 16 2019
NSE, BSE seek clarification from KFA on stake sale news
28 September 2012

The stock exchanges have sought clarifications from Kingfisher Airlines  on whether the carrier is in talks with foreign and domestic investors for stake sale.

 

The National Stock Exchange and Bombay Stock Exchange in separate notices have said that they are awaiting response from KFA

 

Meanwhile, according to bankers who yesterday attended the meeting with Vijay Mallya chairman of the airline to know his revival plan. It is during the meeting that Mallya informed his lenders--a consortium of 17 bankers led by SBI that he is in talks with foreign carriers for a stake sale.

 

It is reliably learnt that the airline failed to assure its lenders with any 'concrete' solution for restructuring of debt in a meeting held on Thursday in Bangalore. The consortium of banks now decided to hold a meeting by the end of October without any participation from the airline company. Bankers have been asking for an equity infusion as a part of recast scheme for the company's total loans of around Rs 7,000 crore. 

 

There is more to it, bankers were supposed to take a tough call in the meeting after the Reserve Bank of India (RBI) asking the latter to not treat KFA brand as collateral since it is intangible.

 

This is because the loan has turned non-performing for most of the banks. Apart from the brand and promoter Mallya's personal guarantee, certain tangible assets such as his villa in Goa have been used as collateral.

 

 

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