Kingfisher Fin,UB Holdings pledge stake

Vijay Mallya-led UB and Kingfisher Finvest pledged their entire stake in Kingfisher Airlines.

Vijay Mallya-led United Breweries (Holdings) and its subsidiary Kingfisher Finvest India have pledged their entire stake of 272 million shares in Kingfisher Airlines,the companies said.

UB Holdings,the holding company of the UB Group that has interests in liquor and aviation,pledged all of its 199.59 million shares in the airline,which is 40.10% of the total number of outstanding shares of the company.

Meanwhile,Kingfisher Finvest has pledged its stake of 63.47 million shares that amounted to 25% of the total number of outstanding shares of the company.

The transactions had taken place on June 16,the company said.

UB Holdings had pledged 86 million shares prior to this while Kingfisher Finvest had pledged 61 million shares.

The pledging of shares comes even as Kingfisher’s plans to raise over $250 million through global depository receipts earlier this year have been delayed,and a few months after the airline implemented a debt recast plan.

The airline had posted a loss of R1,027 crore for the financial year 2010-11 on a revenue of R6,359 crore,compared with a loss of R1,647 crore in the previous fiscal.

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In April,the company implemented debt restructuring plan to recast up to 30% of its R7,651-crore debt as equity to a consortium of 13 lenders. After the recast,State Bank of India was allotted 5.67% while ICICI bank holds 5.3%.

Kingfisher Airlines had also allotted preferential shares to promoter group firms United Breweries and Kingfisher Finvest India under the scheme.