Mallya says he is in talks with a 'foreign investor' to revive the airline.
The management of Kingfisher airlines is in talks with a foreign investor to buy a stake in the airline, which has been grounded for over a year now.
Kingfisher airlines chairman Vijay Mallya told reporters after the company’s Annual General Meeting that talks were on with a foreign investor and that something could emerge in the next 90 days.
“All I can say is that it (investor) is a foreigner. I am not at liberty to give further details because of strict confidentiality clauses. I expect this to take some form or shape in about 90 days. That is my own estimate. It could be longer or could be even earlier,” said Mallya, without naming the potential investor.
He also said that the Kingfisher Airlines Board has requested the United Breweries Holding Limited (UBHL) Board for continued funding and that the latter has considered the request. “In the light of the prospective investor, the UBHL Board has agreed to provide some funding to Kingfisher Airline. But UBHL itself cannot use its funds and assets due to the restraining order by Karnataka High Court,” he said. A division bench of the Karnataka High Court has ordered UBHL to restrain from selling or pledging assets.
On the payment of salary dues to the employees of the airline, Mallya said they have applied to the Court to use part of these funds to pay employees. He also said he had conveyed to the shareholders that the Directorate General of Civil Aviation (DGCA) has been submitted three different plans to restart the airline; however, there has been no response from the regulator.
“We gather informally that they would like to see a full recapitalisation plan,” he said.
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