Wednesday 9 January 2013

Kingfisher Airlines' employees to seek closure of company, want management to sell assets


NEW DELHI: In yet another blow to cash-strapped Vijay Mallya-led KingfisherBSE 2.30 % Airlines, the company's employees will meet in the national capital on Wednesday to seek closure of the airline. 

According to ET Now, the employees are expected to write to the management, asking them to sell assets of the airline and clear salary dues that run into several months. At 2:07 PM, shares in Kingfisher AirlinesBSE 2.30 % were trading at Rs 13.68, down 1.08 per cent on the Bombay Stock Exchange. 

ET on Tuesday reported that lenders to Kingfisher Airlines have decided to take legal action against the airline company for its failure to repay over Rs 7,000-crore debt despite repeated reminders. 

Lenders had been pursuing a soft approach so far in the hope that the company, which has not paid interest on its loans for more than a year now, can be persuaded to come out with a revival plan. But their patience seems to be running out now. 

This is the first time that lenders are discussing recovery measures. Officials who attended the meeting said that lenders' initially step would be to issue a legal notice to the airline. 

With uncertainty over the revival of Kingfisher airlines,Civil Aviation Minister Ajit Singh last week said the airline should present a satisfactory operating plan to the DGCA and work on its rescue plans for the sake of its employees, stakeholders and passengers. 

He also pointed out that the airline has not renewed its licence which expired on December 31, 2012.
http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/kingfisher-airlines-employees-to-seek-closure-of-company-want-management-to-sell-assets/articleshow/17952589.cms

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