All shares of Vijay Mallya-owned Kingfisher Airlines are now pledged with banks. The airline said two of its founder companies, United Breweries (Holdings) and Kingfisher Finvest India, have pledged 115.5 million more shares, thereby having all their shares as collateral now.
As per a report in the TOI, these additional shares were issued earlier this year when almost 30% of the airline's loan of Rs 7,651 crore was converted to shares and issued to lenders and the founding companies.
"The earlier shares were all pledged. Now as part of the corporate debt restructuring, the additional shares issued have been pledged with banks too. Lending against collateral security is nothing unusual. This pledging of shares is a debt security cover package to complete the CDR," Kingfisher CFO Ravi Nedungadi told.
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