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UB in talks with Kingfisher lenders to cut debt

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Reuters Delhi, India
Last Updated : Feb 15 2013 | 2:00 PM IST

NEW DELHI (Reuters) - UB Group, the parent of debt-laden Kingfisher Airlines, said it was in talks with lenders to the carrier to cut their exposure by using proceeds from a stake sale in a group company to Diageo Plc .

The statement comes days after lenders to Kingfisher said they would move ahead towards recovering $1.4 billion of loans in default after the company failed to come up with a viable funding plan.

UK drinks group Diageo agreed last November to buy a 53.4 percent stake in UB Group-controlled United Spirits Ltd for $2.1 billion under a two-stage process.

Kingfisher, which has been stripped of its flying licence and has not flown since October, owes an estimated $2.5 billion to banks, staff, airports and oil companies.

(Reporting by Anurag Kotoky)

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First Published: Feb 15 2013 | 1:49 PM IST

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