The latest I could find is from Bloomberg saying that Kingfisher will put up it's brands as collateral for more loans. The article also says that Jet Airways is also in the red.
http://www.bloomberg.com/news/2011-1...ion-loans.html
Looks like wait-and-see is the only strategy to take at the moment. My flights are on Saturday and then again on 5 January. I have travel insurance through my Lufthansa credit card so I guess if it gets cancelled and I have to buy new flights, I can at least try to make a claim...