Kingfisher Airlines has drawn up emergency three-month plans to restore its financial health, which involves recasting debt, flying more plans and slowing down overseas expansion.
SBI Capital Markets, representing a consortium of 15 banks, is recasting the airline’s debts in which interest rates will be cut by 3.5% with another seven years to repay the loans. The carrier’s debts amounted to Rs. 7,413 crore as of 31 December.
The airline hopes to raise as much as $350 million by February by the sale of depository receipts (GDRs) and domestic offerings to help lower the debt burden.
Kingfisher Airlines made a loss of Rs. 1,647 crore in the last fiscal year, during which it incurred Rs. 640 crore expenditure, of which Rs. 240 crore was on account of the grounded aircraft. It posted a loss of Rs. 187.34 crore in the first quarter of the current fiscal.