Kingfisher Airlines promoters pledge 90 per cent stake with lenders
07 Jul 2011
Mumbai: The promoters of Kingfisher Airlines Ltd have pledged at least 90% of their stake with financial institutions as part of a debt recast package entered into by Kingfisher with some of its lenders. The promoters of the airline have pledged 52.85% of 58.61% stake they currently hold.
The nation's second largest carrier by passengers is struggling to slash losses and raise funds.
In a communication to the Bombay Stock Exchange (BSE) on Wednesday, Kingfisher Airlines said two of the promoting firms-United Breweries (Holdings) Ltd and Kingfisher Finvest India Ltd-have pledged their entire stake.
United Breweries (Holdings) owns 40.1% and Kingfisher Finvest owns 12.75% of Kingfisher Airlines. The only portion of the stake not put on hock is chairman Vijay Mallya's personal holding of 3.04% and UB Overseas Ltd's 2.72%.
According to the company's filings with stock exchanges, as of 3 June, promoter group companies had pledged up to a 50.57% stake in the company.
As part of a debt recast programme the carrier has reduced debt by about 20%, to Rs6,007.30 crore in April, from Rs7,651.12 crore a year ago.
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