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Kingfisher Stock Down By 11% – King Of Bad Times?

The largest lenders of the country, SBI and ICICI Bank saw a downfall of their share value on predominant concerns about rising assets due to the exposure to airline companies. The chairman of SBI, Mr Pratip Chaudhuri, declared that Kingfisher Airlines, being the Non-performing asset to SBI, is in default.

Kingfisher has been finding it difficult to demean its debts and due to the shortage of funds, it has been difficult to run day to day operations. The Airline company’s shares have plunged down to 11% latest by morning of, 6th January.

It has been found out through valuable sources that the service loans of Kingfisher have gone up to over Rs.6000 crores and that the company is in a dangerous financial crisis. The management of the airlines, has canceled 200 flights in the past week, leading to fears that it is close to bankruptcy.

The company has been experiencing losses and has decided to cut the debt by a large percentage by selling property. The management says that plans have been made to reduce the debt and this plan will lower the debt from Rs.6000 crores to Rs.3000 crores.

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