Pledged shares of crisis-hit Kingfisher Airlines, amounting to more than 14 per cent stake, have been acquired by SBICAP Trustee Company. At current market price, these pledge shares — about 11.55 crore — are worth Rs.43 crore. The shares, amounting to 14.29 per cent stake in the airline, which remains grounded since October, 2012, are valued at about Rs.43 crore.
Promoters hold 30.14 per cent stake in Kingfisher, as per the company’s December quarter shareholding pattern.
Burdened under huge losses and large debts, the airline stopped flying in October 2012 and its flying licence also lapsed about two months later.
The company’s accumulated losses have ballooned to over Rs.16,000 crore. Kingfisher is yet to make profit since starting operations in 2005. Besides non-payment of salaries, the Vijay Mallya-owned private carrier is saddled with huge debt and losses. The airline has not serviced its debt of over Rs.7,200 crore to lenders, mainly public sector banks, since January, 2011.
SBI has the maximum exposure to Kingfisher at Rs.1,800 crore. At the annual general meeting of Kinfisher Airlines in Bangalore in September last, Mr. Mallya had said he was working towards the company’s revival.
Invocation of a pledge is triggered when a borrower is unable to deposit additional margin with the bank.
