Indian debt fund buys $72 mln of Kingfisher airline debt

A debt fund managed by India's finance firm SREI Infrastructure Finance has bought $72 million worth of debt of the beleaguered Kingfisher Airlines, its officials said on Monday.

The Kolkota-based SREI Infra Finance group chief financial officer Sanjeev Sancheti told the Press Trust of India it was "a good buy as it is a fully secured debt". The debt was bought from lender ICICI Bank.

Private carrier Kingfisher, controlled by liquor baron Vijay Mallya, reported a net loss of 11.52 billion rupees ($208 million) in the three months to March, a tripling of losses, and has a total debt of at least $1.4 billion.

The airline has never posted a profit since its launch in 2005 and scaled down its operations in recent months, including shutting down overseas operations.

Kingfisher desperately needs at least $600 million to stay in business and pay the amount it owes to suppliers, lenders, other creditors and staff.

It now has the smallest market share among Indian airlines, at 5.2 percent.

Mallya has been unable to find strategic investors who are willing to pump money into the airline. He also hopes that the government may soon clear a stalled proposal, which would allow foreign carriers to invest in domestic airlines.

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • Viernes Santo in Kalibo VERA Files - The Inbox
    Viernes Santo in Kalibo

    Photos by Little Wing Luna, VERA Files Text by Mitch Meñez Kalibo, Aklan--Viernes Santo or Good Friday is the most solemn of all the days in Holy Week. It commemorates the Passion and Death of Jesus on the Cross. The … Continue reading → …

  • Hugas Dugo VERA Files - The Inbox
    Hugas Dugo

    Text by Kimmy Baraoidan, VERA Files Photos by Chris Quintana and Kimmy Baraoidan Pakil, Laguna--In the small town of Pakil, Laguna resides a group of men who call themselves Hugas Dugo. Most members of the group are residents of the … Continue reading → …

  • Lenten procession more than just a spectacle VERA Files - The Inbox

    Text and photos by Kiersnerr Gerwin Tacadena, VERA Files Baliuag, Bulacan--This town is hosting what could be the country’s biggest Lenten procession consisting of more than 100 religious statues riding on carriages or carrozas. But concerns are being raised that … Continue reading → …

Poll Choice Options