Creditors ask Kingfisher to raise Rs 800 cr equity

Mumbai: Creditors to Kingfisher Airlines have asked it to raise Rs 800 crores equity and would not consider debt restructuring unless the troubled airline has a credible plan in place, managing director of State Bank of India said on Monday.

The state-run bank leads a 13-bank consortium of lenders to Kingfisher.

The airline has a proposal to sell real estate in Mumbai to raise funds, Hemant Contractor told reporters.

Shares in Kingfisher rose more than 7 per cent early on Monday on a newspaper report the cash-strapped carrier would consider proposals, including selling property, to cut its $ 1.3 billion debt by more than half.

At 0506 GMT, shares in Kingfisher were trading up 4.07 per cent at Rs 20.40 in a firm Mumbai market.