UB Holdings to hike loans to Kingfisher

February 18, 2013 10:43 pm | Updated November 16, 2021 10:26 pm IST - MUMBAI:

In an attempt to bail out ailing Kingfisher Airlines and reduce the exposure of its lenders, its parent United Breweries Holdings Ltd. has sought shareholders’ approval through postal ballot to provide additional loans of Rs.450 crore to the grounded airline.

The company, as per Section 192A of the Companies Act, 1956, has sought shareholders’ nod to raise the limit of its loans to the airline to Rs.750 crore from the present limit of Rs.300 crore. However, as per the proposal, the total amount of UB Holdings’ exposure to Kingfisher remains at Rs.1,500 crore, as approved earlier. While the limit for loans has been increased to Rs.750 crore from Rs.300 crore, the limit for investment has been reduced to Rs.750 crore from earlier Rs.1,200 crore.

Last week, Kingfisher’s lenders had threatened to recall the Rs.7,000-crore loan and to initiate debt recovery measures after the airline failed to come up with any credible plan to restart operations and to pay back dues.UB Holding shares, on Monday, closed with a loss of 3.78 per cent at Rs.61.05 on the BSE while Kingfisher Airlines stock gained 4.92 per cent to close at Rs.10.03.

Jet shares crash

On the other hand, Jet Airways stocks plunged by 7.70 per cent to close at Rs.570.75 on the BSE after Etihad Airways reportedly said it would take more time to decide on the share purchase deal and it might revise the offer.

Top News Today


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.