UB Group, the parent of debt-laden Kingfisher Airlines, said it was in talks with the lenders to the carrier to cut their exposure by using proceeds from a stake sale in a group company, United Spirits, 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 per cent stake in UB Group-controlled United Spirits for $2.1 billion in 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.
Copyright Thomson Reuters 2013
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