Reliance Industries is planning to acquire stake in debt-ridden Kingfisher Airlines Limited.

If the deal goes through Reliance would also get Mangalore Chemicals and Fertilizers Ltd, in which the UB group has a 30.44%.

Mangalore Chemicals is a fertilizer manufacturing company. It manufactures wide range of products that includes Urea, Di-Ammonium Phosphate, Muriate of Potash, Granulated Fertilizers, Micronutrients, Soil Conditioners and Specialty Fertilizers.

Mangalore Chemicals has a capacity to manufacture 2,17,800 million tonne ammonia (intermediate product), 3,79,500 mt urea, 2,55,500 mt phosphatic fertilisers (DAP & NP 20:20:00:13), 15,330 mt ammonium bi-carbonate (ABC) and 33,000 mt sulphuric acid (SAP) annually.

Vijay Mallya promoted airline has run out of cash due to rising costs and a fierce price war in the market, forcing it to borrow from banks and add to its debt pile of over R7000Cr.

It has not paid some of its pilots for over two months, and 21 of its 60 aircraft are grounded due to dispute with lessors.

In February this year, Hong Kong based SC Lowy was planning to invest $280 Mn in Kingfisher Airlines to help turn around the company.

During the year, R750.1Cr of loan from bankers was converted into CCPS and R553.10Cr to non-convertible cumulative redeemable preference shares to be redeemed after 12 years.

The lenders that have provided funds to Kingfisher are ICICI Bank, Central Bank of India, United Bank of India, UCO Bank, Corporation Bank, IDBI Bank , Punjab National Bank , Bank of India and Bank of Baroda.

Kingfisher has been classified as an NPA by some banks and banks which has large exposure to the company are unlikely to lend further.

Previous Article

Rakesh Jhunjhunwala Acquires Additional Stake In Viceroy Hotels

Next Article

Karvy Capital Launches Systematic Edge Fund

All Comments

Readers' Recommendations

Post a Comment

Display Name		E-mail
Comment
Comments are moderated and generally will be posted if they are on-topic and not abusive.