The board of Kingfisher Airlines is meeting on Monday to work out a
structured life support package for the private carrier which is reeling under a
severe debt crisis. The meeting's top agenda will be to figure out how to slash the huge debt burden that's dragging down the airline.
On the list of options before the board are selling property, converting loans from its parent company UB Group into equity and changing terms under which the airline leases aircraft.
Raise fresh equity, SBI tells Kingfisher The airline's management is hopeful that these steps will result in
cutting down the debt amount by nearly half.
Meanwhile, stocks of billionaire Vijay Mallya-owned company jumped over 5 per cent on the stock market, brushing aside the crisis looming over its head. The company is also due to announce its second quarter result on Monday.
PERSPECTIVE: Kingfisher hits an air pocket At 12.36 pm,
scrip of the company rose 5.85 per cent on the Bombay Stock Exchange to trade at Rs 20.80. The strong footing shone through at the National Stock Exchange too, where the scrip was trading at Rs 20.90, up 6.36 per cent at the same time.
If the board's plans are approved, the troubled airline can approach banks for money to buy fuel and pay salaries.
Top lenders to Kingfisher have been demanding a credible business plan from the airline to resolve its ongoing financial crisis. A meeting with lenders, which is a group of 13 banks, is slated for Tuesday.
MUST READ: Mallya's rich and famous lifestyle The massive financial crisis severely hit Kingfisher's operations last week, with scores of flights being cancelled. The shares of the Vijay Mallya-owned airline also crashed.
According to
Mail Today, Kingfisher suffered a loss of Rs. 1,027 crore in 2010-11 and is reeling under a mounting debt of Rs. 7,057.08 crore.
Kingfisher Airlines was set up in 2005 and acquired India's largest low-cost carrier Deccan Airways two years later.
- With inputs from Headlines Today 
Billionaire business tycoon Vijay Mallya 
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