Kingfisher issues basket of securities to restructure debt

Private air carrier Kingfisher Airlines today said its board has alloted preferential shares to a consortium of lenders, besides promoter group firms United Breweries (Holdings) and Kingfisher Finvest India Ltd, under a scheme to recast its debt.


According to a filing to the Bombay Stock Exchange, the company has allotted a total of 139.81 crore compulsorily redeemable preference shares (CRPS) of Rs 10 face value -- and a coupon rate of 8 per cent -- to the lenders'' consortium and its promoter group firms to cover its outstanding loans.


Out of these, 75.01 crore CRPS will be issued to the lenders'' consortium -- comprising SBI, IDBI Bank, Punjab National Bank, Uco Bank, United Bank of India, Bank of India, Bank of Baroda, State Bank of Mysore and Jammu Kashmir Bank -- while its promoter group firms will pick up 64.8 crore CRPS.


In addition, Kingfisher has issued 55.31 cumulative redeemable preference shares with a coupon rate of 8 per cent to the lenders'' consortium, besides another 9.7 crore compulsorily convertible preference shares at a coupon rate of 7.5%.


Furthermore, 7.09 crore optionally convertible debentures of Rs 100 each have been issued to a trio of companies: Star Investments Pvt Ltd, Margosa Consultancy Pvt Ltd and Redect Consultancy Pvt Ltd. The committee has alloted over 1.99 crore debentures to Star


Investments Ltd, over 2.49 crore debentures to Margosa Consultancy Pvt Ltd and over 2.59 crore debentures to Redect Consultancy Pvt Ltd, as per the filing. The airline''s debt currently stands at over Rs 6,000 crore.