Kingfisher Airlines plans to raise up to $175 mn by Mar 2010
Press Trust of India / New Delhi Sep 22, 2009, 18:50 IST
Private carrier Kingfisher Airlines plans to raise up to 175 million dollars (about Rs 840 crore) before March next year through rights issue and global depository receipts (GDR).
"Yes, we are planning both rights issue and GDR placement. The combined amount will be about 150-175 million dollars," UB Group Chief Financial Officer Ravi Nedugandi told PTI.
He, however, declined to comment on details saying pricing and exact size have not been finalised yet.
"Timing will be before March 2010," he said when asked about the timeline for raising the fund.
Kingfisher is in need of funds and has a total debt of about Rs 6,000 crore.
"This includes about Rs 1,800 crore being given in advance to aircraft manufacturers against future delivery of planes," Nedugandi added.
The carrier, which has a fleet of 71 aircraft had placed orders with Airbus, including five confirmed orders for A380s. It had also placed orders for five A340s, which were later converted for five A330 aircraft.
The airline is likely to get the first delivery of the world's largest aircraft Airbus A380 in 2014, which was scheduled for delivery in 2012.
The airline has faced problems clearing its fuel bills. Petroleum Minister Murli Deora had informed Parliament in July that Kingfisher Airlines owes over Rs 950 crore to state-run oil companies in unpaid jet fuel bills.
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