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Kingfisher gets $163.5 mn investment offers: report

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Reuters

Last Updated: February 26, 2012, 01:16 IST

Kingfisher gets $163.5 mn investment offers: report

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

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

The investors would get a combined 24 per cent 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 $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 $245.4 million by the stock market, shares in Kingfisher Airlines fell 4.35 per cent on Friday to 24.20 rupees in a weak Mumbai market.
first published:February 26, 2012, 01:16 IST
last updated:February 26, 2012, 01:16 IST