Recapitalization for Kingfisher says CEO, Sanjay Aggarwal

Bangalore: Kingfisher Airlines, is planning to recapitalize within-six-eight weeks’ time. The airline is now confident of an equity infusion between $500-600 million from fresh funds and banks, says Sanjay Aggarwal, CEO of KFA (Kingfisher Airlines), as told to ET.

A week ago, Kingfisher said in a message to its employees, “We got hit by some large unexpected payments which had to be addressed on an emergency basis. It will take us another week before we complete the salary disbursements.” “We are not going to pull out operations from any base and about 10 aircraft will be back in service soon. We are in talks with investors and the airline will soon get recapitalized”, added Aggarwal.

Sanjay is optimistic about the recapitalization hoping that private equity investors will find low valuations attractive and change foreign investment rules that will allow global airlines to invest in local carriers.

Aggarwal said, “The process (to give the deal a tangible shape) takes 6-8 weeks and we are aiming to get the investors in by then. We have a mix of investors but will not be able to disclose further details. We are approximately looking at a $500-million infusion. We have requested banks for non-fund based limits and so between fresh money and some of the non-fund based limits could be the total solution.”