February 19, 2013 / 6:53 AM / 5 years ago

Kingfisher gains on United Breweries loan hopes

Reuters Market Eye - Shares in Kingfisher Airlines (KING.NS) gain by its daily limit of 5 percent after controlling stakeholder United Breweries Holdings Ltd (UBHL.NS) raised the amount it can lend to the ailing carrier.

An airlines staff member sits in front of a closed Kingfisher Airlines ticketing counter at the airport in Kolkata October 3, 2012. REUTERS/Rupak De Chowdhuri/Files

United Breweries said it had raised the limit of loans for Kingfisher to 7.5 billion rupees from 3 billion rupees, according to an exchange filing on Monday.

The statement came after lenders to Kingfisher said on February 12 that they would take initial steps towards recovering $1.4 billion of loans in default after the company failed to come up with a viable funding plan.

UB Group, the parent of both Kingfisher Airlines and United Breweries, has told lenders it would consider using proceeds from a stake sale in a separate group company to Diageo Plc(DGE.L).

Reporting by Abhishek Vishnoi

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