UB Distributors helping Kingfisher airlines with Rs 1000 Crore

As a last option to save Kingfisher airlines from the trouble UB Distributors is giving helping hand with Rs 1000 crore. This will fulfill the banks request on the existing loans which will make the way clear to allocate fresh funds to help kingfisher. Even this announcement about the investment is still under discussion and will be finalized in another 48 hours. Suppose if these funds coming into Kingfisher Airlines means it will be coming as "associate" of UB Group. Again this will be a debt or they have to take equivalent equity. Apart from this some of the Kingfisher bank accounts are not frozen, so they can clear the income tax, service tax dues. Initially it agreed to pay only Rs 10 crore and now they said they can pay Rs 44 crore in a day or two

The banks have a total exposure of over Rs 7,000 crore, of which Rs 4,000 crore is in the form of term loans. So it will be very difficult for kingfisher airlines to some out of this issue completely. Because if they are getting fresh funds from bankers, will they be able to repay it? Whether they have clear business plan to come up in near feature? These kinds of questions are arised by the bankers. If they are not able make the critical payment for bankers, then the banks will take necessary actions against the non performing asserts such as villa, corporate office, two helicopters and ATR aircraft, which was valued at Rs 4000 crore approximately.

Today (March 26, 2012) the stock touched its all time low, it went down by 6.7% and closed at Rs 16.75