Mumbai, Sept. 28:
Stock of debt-ridden Kingfisher Airlines plunged on the bourses after
bankers turned down the company's request for a loan of Rs 200 crore. Shares in
the company hit the lower circuit and closed at Rs 16.12, down 4.95 per cent on
the BSE. The stock, however, gained close to 90 per cent in just one month time
on expectation of debt restructuring.
On Thursday, the BSE halved the permissible stock movement to five per
cent for the Kingfisher Airlines stock.
Earlier, the scrip was allowed a movement of 10 per cent. Exchanges
usually lower the circuit-filter to avoid excessive movement in the stock.
According to lenders, the promoter and chairman of Kingfisher Airlines
Vijay Mallya failed to spell out a concrete revival plan on equity infusion
into his airline, reeling under debt of about Rs 9,000 crore.
Aid till next meet
The next meeting between the lenders and airline management will be held
in the third week of October. A “basic operating plan” has been asked to be
prepared by investment bank SBI Capital Markets Ltd for the airline to stay
afloat till the next lenders’ meet. This is the third time that SBI Capital has
been asked to prepare a rejig exercise for the airline. Banks together have an
exposure of nearly Rs 7,000 crore in the airline.
With a fleet size down to seven, the airline is currently operating on
curtailed capacity and has suspended its international operations. The Director
General of Civil Aviation said recently that DGCA will look into the
cancellations of KFA flights in the upcoming winter schedule in October. “We
will take into account the capacity of airlines to operate according to the
schedule,” said Arun Mishra, DGCA.
http://www.thehindubusinessline.com/todays-paper/tp-markets/article3946720.ece
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