Kingfisher Q2 loss Rs 469cr, seeks more credit
The airlines has not only incurred substantial losses, its net worth has also been eroded.
Mumbai: Kingfisher on Tuesday reported a loss of Rs 469 crore in the second quarter, saying that it had incurred substantial losses. In a statement released on Tuesday, Kingfisher said that while the company had incurred substantial losses, its net worth had also been eroded.
Reports also suggest UB Group has borrowed 400 crores from SICOM, a non-banking finance company partly-owned by the Maharashtra government. The Maharashtra government holds 49 per cent equity in SICOM.
Kingfisher, in its statement, said it had sought extension of time to meet obligations and that the financial statement of the company has been prepared on the basis of the "ongoing concern".
The company also made a request to the bankers for further credit facilities.
The airlines board of directors, meanwhile, will continue to huddle for the second day on Tuesday after they failed to draw up a rescue plan.
The board met on Monday to discuss a debt restructuring plan and raising funds by selling assets, investments and securing loans from the parent UB group.
Sources say that the Kingfisher management will also be meeting a 13-bank consortium on Wednesday. The banks which have a stake in the airline, have reportedly discussed various fund-raising options with the board.
Sources added that senior Kingfisher officials are likely to address the media later in the day.