Mumbai: Kingfisher Airlines’ tryst with bad news continues. Hindustan Petroleum Corporation Ltd (HPCL), to which Kingfisher Airlines owed crores in jet fuel dues, has encashed the bank guarantee provided by the airline.
Kingfisher’s bank guarantee to HPCL was worth about Rs 434 crore. Till September, the airline owed Rs 341 crore to HPCL in fuel dues. A senior executive at HPCL’s finance department said the company had already encashed the bank guarantee.
With the aviation regulator suspending Kingfisher’s flying licence, we decided we had to make use of the bank guarantee provided to us by the airline. We have been able to cover the dues,” the executive added.
On Tuesday, the HPCL stock closed at Rs 300.95, up 0.33 per cent.
Last month, B Mukherjee, director (finance), HPCL, told Business Standard Kingfisher owed the company about Rs 341 crore, adding if Kingfisher failed to pay the dues, HPCL had the option of encashing the bank guarantee.
24/10/12 Kalpana Pathak/Business Standard
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Kingfisher’s bank guarantee to HPCL was worth about Rs 434 crore. Till September, the airline owed Rs 341 crore to HPCL in fuel dues. A senior executive at HPCL’s finance department said the company had already encashed the bank guarantee.
With the aviation regulator suspending Kingfisher’s flying licence, we decided we had to make use of the bank guarantee provided to us by the airline. We have been able to cover the dues,” the executive added.
On Tuesday, the HPCL stock closed at Rs 300.95, up 0.33 per cent.
Last month, B Mukherjee, director (finance), HPCL, told Business Standard Kingfisher owed the company about Rs 341 crore, adding if Kingfisher failed to pay the dues, HPCL had the option of encashing the bank guarantee.
24/10/12 Kalpana Pathak/Business Standard
