Mallya says he is on track for Rs800-cr Kingfisher loan

The nosediving Kingfisher Airlines has received recapitalisation offers worth Rs800 crore ($163.5 million) from two Indian investors, according to a Times of India report today quoting Kingfisher and United Breweries chairman Vijay Mallya.

The investors would pick up a combined 24 per cent stake in the airline if the deals go through, he said.

''There's a deal offer from two Indian investors to recapitalise. We have their termsheets," Mallya told the paper.

He declined to specify whether the investors were from large Indian corporate houses. "They are large investors, and I would leave it there," he said.

Desperately strapped for cash, Kingfisher is on the brink of collapse after nearly a week of flight cancellations and resignations by dozens of its pilots.

Reports have been circulating all week that the State Bank of India, Kingfisher's as well as the country's largest lender, is set to provide a bailout package of up to Rs1,500 crore; these have neither been confirmed nor denied so far.

A third potential investor was an investment fund from Hong Kong. Last month, The Economic Times reported that SC Lowy, a specialist firm focused on illiquid assets, was discussing $280 million investment in the airline carrying debts estimated at over Rs7,000 crore.