Hong Kong's SC Lowy, which specialises in buying into illiquid assets and creating liquidity for them, is in talks with Kingfisher Airlines and may invest about $280 million to help turn around the company.

Lowy and Kingfisher have been in talks for some time and a deal may happen by the end of the monthas per a report in ET.

The Vijay Mallya-promoted airline has run out of cash due to rising costs and a fierce price war in the market, forcing it to borrow from banks and add to its debt pile of over Rs 7,000 crore. The airline is talking to banks for more money and has sought the government's help to pay creditors, some of whom are threatening to repossess aircraft. 

It has not paid some of its pilots for over two months, and 21 of its 60 aircraft are grounded due to dispute with lessors. A deal with SC Lowy could be alifeline for the airline, helping it pay down some debt, meet statutory obligations and run operations for some months.