Kingfisher gets shareholders' approval for debt recast

Bangalore-headquartered Kingfisher Airlines, owned by liquor-to-airlines UB Group, has received shareholders’ approval regarding company's debt recast plan in its extra-ordinary annual general meeting (AGM) held here today.

Earlier, the board of the airlines gave approval to the proposed debt restructuring plan of the company.

In the aftermath of this approval, the company will now be able to convert lenders’ debt of up to Rs 1,355 crore and the promoters’ debt of Rs 648 crore into share capital. Under the package, Kingfisher will sell 5.75 million shares to a consortium of lenders. It will also sell 7.8 million of the 7.5 per cent convertible shares.

The airline has debt of Rs 6,000 crore on its books and the restructuring will help it cut interest costs. Mallya had recently said there would be an interest rate reduction to an average of 11 per cent in this process.

Share price of Kingfisher Airlines closed 3.96 per cent higher at Rs 61.65 on the BSE today.