With debt of over Rs 7,500 crore, Mallya has pledged nearly 95 percent of his shareholdings in the airline to lenders. According to Business Standard, the total current market value of Kingfisher is Rs 960 crore, but Mallya owns only Rs 30 crore worth of shares that are unencumbered. This means his lenders are the real owners of the airline.
But now even the lenders are bailing out. On Monday, ICICI Bank announced that it had dumped its entire Rs 430 crore loans to Kingfisher in favour of Srei Infrastructure Finance at par – along with the collateral. The bank, which held 5.68 percent of Kingfisher’s shares through loan conversions, now holds about 3 percent. Other bank lenders apparently own around 21 percent. They may also be in a mood to bail out like ICICI Bank.
03/07/12 First Post.com
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