Bangalore: Criris-hit Kingfisher Airlines is in talks with a foreign
investor for potential stake sale, its Chairman Vijay Mallya said
Tuesday.
He, however, refused to divulge the investor's name.
"I
expect this to take some form or shape in about 90 days. That is in my
own estimate. It could be longer or it could be even earlier," Mallya
told reporters after the annual shareholders meeting of the company.
Kingfisher
Airlines has remained grounded for almost a year now under the burden
of huge debts totalling over Rs 7,000 crore and accumulated losses of
more than Rs 16,000 crore.
Asked about the investor's profile,
Mallya said he is unable to reveal anything at this moment as it is
something that would breach the confidentiality of agreement. "The
investor is very sensitive to identity being revealed. Let us really
give it a good try to get KFA started," he added.
To a query,
Mallya said the United Breweries Holdings Limited (UBHL) Board has
considered the request of KFA Board for continued funding in the light
of the prospective investor and agreed to provide some funding for KFA.
"UBHL
itself cannot use its own funds and its assets that it currently has
because of the restraining order from the Karnataka High Court. We have
in fact applied to the court's permission to use part of this fund, and
now it is in the hands of the honourable court," he said.
On the
response of the Directorate General of Civil Aviation (DGCA) to the
airlines' submission of revival plan in a bid to restart limited
operations, Mallya said the company had not heard from the aviation
regulator, but gathered informally that they would like to see
recapitalisation plan.
Asked whether the UBHL has agreed to
pay employees' salaries, Mallya said: "Yes, that is the principle
request before the honourable court."
Queried if there is any
contingency plan in case the court does not take it up, he said: "I
have no contingency plan to violate or deviate from the orders of
honourable court."
To a question, Mallya said issues with its creditors are bilateral in nature and would talk to them from time to time.
"Some
of them have preferred bilateral negotiations in good faithful spirit
and some have gone to court. We have to deal with all these issues as
they come along," he added.
On Malaysian low-cost carrier Air
Asia impacting the aviation sector in India after its foray into the
country, Mallya said KFA was never a low-cost carrier and always
challenged the very use of the word. "If at all, it will have an impact
on the full service space, but good luck to all those who are starting,"
he said.
Asked how he saw the aviation sector panning out in
next year or so, Mallya said: "If you take all three components -
current crude oil prices, the value of rupee versus the dollar etc - as
they exist, obviously it is very challenging. And I don't know whether
there can be full recovery."
