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United Breweries (Holdings) increases loan limits for Kingfisher Airlines

19 Feb 2013 Evaluate

United Breweries (Holdings), to accommodate further lending to debt-laden Kingfisher Airlines, has hiked the loan limit for the ailing carrier from Rs 300 crore to Rs 750 crore and reduced the investment limit from Rs 1,200 crore to Rs 750 crore, thus maintaining the overall limit of Rs 1,500 crore. The company has sought approval from its shareholders for the same.

Earlier in September 2008, Shareholders of UB Holdings had approved lending funds to Kingfisher to the tune of a maximum amount of Rs 1,500 crore. Later in 2010, the company got approval of shareholders for a revision within this overall limit, pursuant to which the loans for Kingfisher were capped at Rs 300 crore and investments at Rs 1,200 crore.

 

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