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Kingfisher Airlines has ceased to be a subsidiary of United Breweries (Holdings) Ltd as of February 18, 2012.
According to a filing made by the company to the BSE, Kingfisher Airlines (KFA) was no longer a part of UB Holdings, consequent to the allocation of shares against optionally convertible debentures (OCDs). However, the company said that it had “significant exposure on various counts” to KFA.
These include, investment in equity/preferential capital (Rs 2,118.48 crore), guarantees given to banks (Rs 6,732.55 crore), guarantees to aircraft lessors/others (Rs 2,193.31 crore), advances (Rs 1,029.75 crore) and interest/commission/logo fees receivable (Rs 141.09 crore). Together, UB Holdings' total exposure to KFA stands at Rs 12,215.18 crore.
The limited review report from the chartered accountants who reviewed the company's finances also highlights the fact that “certain aircraft lessors and a banker have involved the corporate guarantees given by the company on behalf of KFA,” and said that the total amount outstanding as of March 31, 2012, was Rs 433.29 crore.
KFA is also negotiating with the beneficiaries, said the report from the chartered accountant.
In the limited review report, the chartered accountants also drew attention to guarantee commission income accrued, of Rs 8.30 crore for the quarter, and Rs 33.35 crore for the year, on the guarantees given to certain bankers on behalf of Kingfisher Airlines. They said that the recovery may take much longer.
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