Kingfisher Airlines Ltd said on Friday its board had approved a rights issue of shares to raise up to 20 bn rupees ($434 million). The company, promoted by liquor baron Vijay Mallya, gave no timing or details of the proposed issue.
The board also amended the terms for the issue of optionally convertible debentures (OCD) allotted on Jan 3, the airline said. An investor has the option to convert these debentures into shares at a price set by the issuer. The move was part of Kingfisher's debt restructuring issue, which helped it pare some debt by converting loans into equity.
The company had issued the debentures worth more than 7 bn rupees to three firms acting in concert with the founders and the debentures would be redeemed prior to the rights issue, it said. "In the event the rights issue has not occurred during the relevant period, the OCD shall continue in accordance with their original terms, and may be redeemed at the end of 18 months from allotment," the airline said.
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