India's debt-laden Kingfisher Airlines Ltd has received recapitalisation offers worth 8 billion rupees ($163.5 million) from two Indian investors, the Times of India said on Saturday, citing the carrier's Chairman Vijay Mallya.
The investors would get a combined 24 percent stake in the airline if the deal succeeds, the report said citing Mallya. Desperately strapped for cash, Kingfisher stands on the brink of collapse after nearly a week of flight cancellations and resignations by dozens of its pilots. Kingfisher has not turned a profit since it was founded in 2005 and is carrying a debt burden of at least $1.3 billion. Its revenue has been in decline since the end of last year. Staff are not being paid and tax bills remain outstanding.
"There's a deal offer from two Indian investors to recapitalise. We have their termsheets," the report quoted Mallya as saying. "They are large investors and I would leave it there." Valued about $245.4 million by the stock market, shares in Kingfisher Airlines fell 4.35 percent on Friday to 24.20 rupees in a weak Mumbai market.
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