Kingfisher Airlines
will have to wait to be recapitalized. UB group chairman Vijay Mallya said he
would handle the Kingfisher issue separately and money from the United Spirits
deal would not be utilized to revive the ailing airline.
He said the holding
company, United Breweries Holding Ltd, would decide on a rehabilitation plan
for Kingfisher separately. “Inter-company issues, if any, would be sorted out,”
he said. “We have multiple businesses and each business operates independent of
each other, there is no cross contamination with each other. I have done what
is best for the beer business, now I have done what is better for the spirits
business.
Similarly, I will do
what is best needed for the Kingfisher Airlines at the appropriate time,” Mr.
Mallya said.
However market
analysts believe that some part of the money generated from the USL deal would
come to Kingfisher or to retire part of its debt to release group companies
stocks pledged with the banks as security.
“Mallya has given
personal guarantee for Kingfisher’s loans and apart from this there is
corporate guarantee.
Non-performing
Some money will have
to be utilized for Kingfisher,” market analyst Ambarish Baliga said.
Kingfisher’s employees expressed disappointment with Mr Mallya’s observations.
Earlier during the
day, State Bank of India chairman Pratip Chaudhuri said that the bank had
classified the Kingfisher Airlines account as a non-performing asset and the
entire loan had been provided for.
“There is no downside
in Kingfisher. For the airline, nothing can get any worse from here” he said.
Mr Chaudhuri said: “If
at all it (KFA) starts flying and gets capitalised, there can only be an upside
and to that extent this news is positive.”
http://www.thehindu.com/todays-paper/tp-business/kingfisher-will-be-handled-separately/article4083613.ece
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