Kingfisher Air wants Oil Min to relax payment of dues

Kingfisher Airlines has written to the Oil Ministry seeking relaxation for payment of dues, reports CNBC-TV18, quoting sources.
Kingfisher has paid Rs 495 crore in outstanding dues to oil companies in three installments, sources said.
There was meeting held in October some time back where Oil Secretary, the Civil Aviation Ministry, oil-marketing companies and airline companies had come together to agree to pay the outstanding dues to the oil companies i.e. from the airline companies in six-months in six equal installments.
Kingfisher was required to pay Rs 983 crore in six installments by March 2009. Thus Kingfisher defaulted on 90-days credit period arrangement with oil companies.
However, sources believe that the company can pay the balance dues including interest accrued by December 2009.
Meanwhile, oil companies resorted to cash and carry business after Kingfisher defaulted.
20/02/09 CNBC-TV18/Money Control.com

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Categories: kingfisher Feb 2009