Kingfisher Airlines will convert part of its debt, of up to Rs 1,355 crore from banks, into preferential shares, and will repay the remaining debt over nine years and get the bank interest rates lowered, according to a debt recast package that its board approved on Thursday. About Rs 648 crore of debt from promoters will also be converted into share capital. The net effect of the package would be to reduce the interest burden to an average 11 per cent. The plan is the result of a one-time relaxation in restructuring sanctioned by the RBI in September. The domestic carrier, burdened with a debt of over Rs 6,000 crore, gets to repay the remaining loans to lenders over nine years that is through 2019, with an additional time of two years.
The company statement would allot up to 57.5 crore of cumulative preference shares of Rs 10 each to the 15-member lender consortium. These would be redeemable at par at 8 per cent after 12 years. Up to 78 crore shares would be issued to lenders as compulsorily convertible preference shares of Rs 10 each and redeemable at 7.5 per cent. The tenure was not shared. Another lot of 97 lakh compulsorily convertible preference shares would be issued to UB Holdings, the promoter, at 6 per cent redemption; the period was not given. Up to an aggregate of 64.80 crore shares would be issued as compulsorily convertible preference shares of Rs 10 each, at 7.5 per cent, to promoters UB Holdings and Kingfisher Finvest India Ltd, again for an unspecified time. Among other lenders, the airline company would issue 2 crore optionally convertible debentures of Rs 100 each to each of two companies — Star Investments and Redect Consultancy P Ltd — at 8 per cent interest. Another 3 crore optionally convertible debentures of Rs 100 each would go to Margosa Consultancy P Ltd.
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| Raymond | 422.05 |
| Global Vectra Helico | 203.85 |
| Taneja Aerospace | 281.55 |
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