Kingfisher Air runs up Rs 942 cr debt

Bangalore: Kingfisher Airlines, which recently completed the first year of its operations, has run up a debt of close to Rs 950 crore.
The company, during the first quarter-ended June 30, 2006, has raised debt totalling Rs 327 crore, taking the entire outstanding to Rs 942 crore.
According to UB Holdings, the holding firm for Kingfisher Airlines, it has executed guarantees in favour to banks aggregating Rs 327 crore on behalf of Kingfisher Airlines Ltd (KFA) during the quarter, taking the debt up to Rs 942 crore cumulatively to-date. UB Holdings presently hold 83.35 per cent in this firm.
The company had to resort to this kind of debt as its efforts to raise private equity to the tune of $150 million has not materialised. Plans for an IPO, according to the company officials, is at present on the backburner.
26/07/06 Raghuvir Badrinath/Business Standard

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