Cash-strapped Kingfisher Airlines ( KFA) yesterday (April 17, 2012), said it has alloted equity shares against optionally convertible debentures ( OCDs), a development that may help in saving interest outflow on such instruments.
In a filing to the BSE, KFA said it has issued a total of 35.6 million equity shares to Star Investments and Amar Nath Jhunjhunwala at a price of Rs23.63 a share in lieu of conversion of debentures.
'The board has issued 30,300,000 equity shares to Star Investments arising out of conversion of 7,159,890 OCDs and 5,342,361 shares to Amar Nath Jhunjhunwala of 1,262,400 OCDs at a price of Rs23.63 per share,' the company said in a statement.
In January last year, KFA had allotted over 70 million optionally convertible debentures ( OCDs), having an interest rate of 8%, to the entities.
'Post allotment, the paid-up equity share capital of the company stands increased to Rs613 crore from Rs577 crore,' the company said.
The conversion of OCDs to equity shares will help KFA reduce its debt burden as it will save on the 8% interest cost.
KFA, which suffered a loss of Rs1,027 crore in 2010-11 and has a debt of Rs7,057.08 crore, posted a Rs444 crore loss in third quarter this fiscal.
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In a filing to the BSE, KFA said it has issued a total of 35.6 million equity shares to Star Investments and Amar Nath Jhunjhunwala at a price of Rs23.63 a share in lieu of conversion of debentures.
'The board has issued 30,300,000 equity shares to Star Investments arising out of conversion of 7,159,890 OCDs and 5,342,361 shares to Amar Nath Jhunjhunwala of 1,262,400 OCDs at a price of Rs23.63 per share,' the company said in a statement.
In January last year, KFA had allotted over 70 million optionally convertible debentures ( OCDs), having an interest rate of 8%, to the entities.
'Post allotment, the paid-up equity share capital of the company stands increased to Rs613 crore from Rs577 crore,' the company said.
The conversion of OCDs to equity shares will help KFA reduce its debt burden as it will save on the 8% interest cost.
KFA, which suffered a loss of Rs1,027 crore in 2010-11 and has a debt of Rs7,057.08 crore, posted a Rs444 crore loss in third quarter this fiscal.
....more info