According to some reports, Hong Kong-based distressed debt company, SC Lowy Financial will invest in cash-strapped Kingfisher Airlines.

The company might invest $280 million in the airline and might save it from going bankrupt as it finds it increasing difficult to run normal operations due to lack of funds. SC Lowy is reportedly in talks with the Indian aviation major to help turn around the company.

Lowy and Kingfisher have been holding discussions since some months and the deal might be reached by the end of the month. The deal to bring new capital into the firm in debt-laden Kingfisher might be finalized by the end of the year.

Kingfisher Airlines has appealed to the Indian government for providing financial assistance saying that it will not be possible for it to carry out normal operations without a temporary bank overdraft.

The airline requires the financial assistance to pay its creditors and avoid grounding its fleet, according to Vijay Mallya, chairman of company, which was once a leading aviation firm and was seen by many as an emerging force in the sector.

India's union civil Aviation Minister Ajit Singh pointed out those supporting state-owned airlines is the responsibility of the government; however the same principle cannot be applied to the private sector airlines in the country.