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The Fall of KingFisher
By siliconindia
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Friday, 18 November 2011, 01:58 IST |
5 Comments
In the debt restructuring done by banks, 13 in all, they agreed to convert a big part of their debt into equity by acquiring the Kingfisher Airlines share at Rs 63 per share as against the then prevalent price of Rs 40.
The banks, in all, hold over 24 percent of the airline equity. But between then and now, the share value has eroded sharply to around Rs 22 which is just one-third of what it was when the shares were given to them as part of debt restructuring. So one can imagine how the banks have also suffered a serious blow.
Kingfisher Airlines has delayed salaries (for Jul 2011) of its employees in Aug 2011. The management stated that it does not have the money, and has not given any date for the payment. Kingfisher airline had earlier stated that due to the bank strike, the salaries could not be processed.
