Mumbai: Kingfisher Airlines chairman Vijay Mallya said the company has approached lender-banks for a reappraisal of working capital requirements following a 50% surge in price of fuel in recent months, but denied it has sought any fresh debt restructuring.
India's second largest airline by market share was also in discussions to convert its high-cost domestic debt into foreign currency loans, he added.
Mallya told TOI on Friday that that the company had written to banks, which have an equity stake of about 23% stake, to participate in the ongoing Rs 2,000 crore rights issue. "In a rights issue, all shareholders are invited to subscribe. This does not mean we've asked banks for restructuring."
He said most of the airline's Rs 600 crore dues to oil companies were backed by bank guarantees. "There are guarantees for almost Rs 560 crore, so the real exposure is only about Rs 40 crore."
12/11/11 Times of India
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