Mallya's personal guarantee of Rs 249 cr to save Kingfisher

Bangalore, Dec 10: Kingfisher Airlines, which has been facing tremendous difficulties following the reports of successive days of flights cancellation, debt of Rs 7,500 crore and rising, a July-September quarter loss of Rs 469 crore, delayed salaries, pilots quitting, may once again fly in full gear. Now, the Chairman, Vijay Mallya has given a personal guarantee of Rs 249 crore to save the sinking airlines.

Minister of State for Finance, Namo Narain Meena informed the Parliament that United Breweries Holdings, which is led by Mallya, earlier had given a corporate guarantee of Rs 1,601.43 crore.

The operation of Kingfisher Red, which was believed as the budget carrier for the Kingfisher Airlines, has recently been suspended following the increasing debt and losses.

Giving a detailed idea about Kingfisher and SBI's plan, Narain Meena said, "State Bank of India (SBI), leader of the consortium (of 11 lenders to Kingfisher), has stated that at present, there is no plan (to carry out a second round of restructuring of loans to help Kingfisher)."

SBI is one of the top banks among 14 other banks which had lent money to the ailing airline carrier.

OneIndia News