InterGlobe Enterprises Pvt. said it underwrote the financial risk of airline IndiGo while the carrier’s co-founder Rakesh Gangwal capped his risk at an equity investment of Rs 15 crore ($2.2 million).
InterGlobe, a conglomerate owned by another of Indigo’s founders Rahul Bhatia, said its aggregate financial exposure was over Rs 11 billion and the risk ratio between InterGlobe and Gangwal peaked at 80:1, according to an emailed statement. A dispute between the founders of one of Asia’s biggest budget carriers is deepening.
Kapil Bhatia, chairman of InterGlobe, and Rahul Bhatia had extended personal loans to IndiGo and personal guarantees to banks for the airline’s financing needs, which include pre-delivery payments, aircraft acquisitions and working capital, it said.