Kingfisher to raise $250-$300 mn by Jan: report

Kingfisher to raise $250-$300 mn by Jan: report

Mumbai: Kingfisher Airlines will raise $250-$300 million by January next year, the Times of India said on Wednesday, in a report quoting chairman Vijay Mallya.

“We are waiting for the debt restructuring formalities to be completed. Over 50% of the banks have received board approval for the plan and we hope the rest of the lenders will clear the debt recast in the next 10 days," he told the paper.

The lenders will convert part of their loans into preferential shares in accordance with the debt recast package plan worked out by SBI Capital Markets, the report said.

Kingfisher’s debt was estimated at around 6000 crore, including working capital.

On Tuesday the firm said its board will meet on 25 Nov. to consider issuing convertible and/or reedemable securities to a consortium of lenders, promoters and other investors in line with their debt recast plans.

The company plans to list the GDRs in London or Luxembourg, group chief financial officer Ravi Nedungadi told the paper.

“We do not want to raise cash through this issue because we think the share price is still low," Nedungadi said.

When contacted by Reuters, the Kingfisher spokesperson declined to comment immediately.