Kingfisher debt recast wait gets longer

The wait for debt recast and revival of Vijay Mallya-led Kingfisher Airlines (KFA) got a tad longer, with bankers expecting a “clear” picture to emerge only in the third week of October, when the next lenders meeting is slated to be held, according to a senior banker from a Mumbai-headquartered public sector bank.

"Mallya said he is talking to domestic and foreign investors for possible capital infusion.  We can expect debt recast to happen if Mallya manages to get fresh capital by that time,” the banker told Deccan Herald on condition of anonymity, on the outcome of the lenders' meeting held on Thursday.  The meeting was attended by about 15 bankers who have a total exposure of about Rs 7,000 crore to KFA.

It is understood that the six-member KFA team was led by Mallya who made the presentation to the bankers on his plans to revive KFA. A Karnataka-based banker, with an exposure of about Rs 180 crore said that "nothing worthwhile" came out of the meeting and hoped for some forward-looking action next month.

Sources also told Deccan Herald that even as Mallya comes up with a revival plan next month, SBI Caps will also "examine the viability" of KFA's operations, after factoring in possible capital infusion.

The maximum exposure is that of SBI, of about Rs 1,500 crore, followed by PNB, Bank of Baroda, PNB and Bank of India. ICICI Bank’s exposure of Rs 430 crore was taken over by Srei Venture Capital Limited in July this year.

The share price of KFA closed at Rs 16.96 on the BSE, up 8.03 per cent.

NSE asks Kingfisher about stake sale

New Delhi, reuters: The National Stock Exchange (NSE) said it has written to Kingfisher Airlines seeking information on media reports that the debt-laden carrier is in talks with foreign airlines and local investors to sell a stake.

Kingfisher's billionaire chairman Vijay Mallya told shareholders on Wednesday he was in talks with foreign carriers for investments, reiterating comments he has made over the past year without any concrete developments.

However, the airline's share price has soared in the past month and a half on hopes of a reviva. "The Exchange, in order to verify the accuracy or otherwise of the information reported in the media and to inform the market place so that the interest of the investors is safeguarded, had written to the company," the NSE said in a statement on Thursday.