UB in talks with Kingfisher lenders to cut debt
NEW DELHI (Reuters) - UB Group, the parent of debt-laden Kingfisher Airlines(KING.NS), said it was in talks with lenders to the carrier to cut their exposure by using proceeds from a stake sale in a group company to Diageo Plc (DGE.L).
The statement comes days after lenders to Kingfisher said they would move ahead towards recovering $1.4 billion of loans in default after the company failed to come up with a viable funding plan.
UK drinks group Diageo agreed last November to buy a 53.4 percent stake in UB Group-controlled United Spirits Ltd for $2.1 billion under a two-stage process.
Kingfisher, which has been stripped of its flying licence and has not flown since October, owes an estimated $2.5 billion to banks, staff, airports and oil companies.
(Reporting by Anurag Kotoky)
- Tweet this
- Share this
- Digg this
- UPDATE 3-Pizza chain Sbarro files for bankruptcy protection
- U.S. top court declines to hear 'I (heart sign) boobies' case
- Ten countries scour sea for Malaysia jet lost in "unprecedented mystery"
- Evidence so far does not point to attack on Malaysian plane - sources
- Allianz lead insurer and Willis broker for Malaysia Airlines
The BSE Sensex ended up slightly on Monday after rising to a record high for a third consecutive session as strong foreign buying continued to boost domestic-focused shares such as those of HDFC Bank, but momentum waned as exporters slumped on a stronger currency. Full Article