‘Kingfisher crisis likely to be resolved next week’

Have organised funds to pay 'seriously overdue salaries' to the employees,says Mallya.

Written by Agencies | New Delhi | Published:February 27, 2012 7:09 pm

Hoping to resolve the crisis facing Kingfisher Airlines early next week,Vijay Mallya today said he has organised funds to pay “seriously overdue salaries” to the employees.

Mallya gave no details about the funding but said the airline promoters- the UB Group and its associates have converted their loans for an additional five per cent equity last week.

“This (five per cent equity) is the maximum permitted under law in any one financial year but clearly demonstrates the faith that I have in all of you (employees) and in our company,” he said.

In a letter to the employees,Mallya also lashed out at “Indian and ‘paid’ media” for their reports on the cash-strapped carrier.

“The Indian media and the ‘paid’ media that even the Prime Minister referred to are unscrupulous and they will do whatever it takes,part fact or fiction,part true or untrue to achieve their sensationalist objectives,” he said.

“I have organised funding so that we can pay your seriously overdue salaries which is a source of great personal sorrow for me. We are currently handicapped as our bank accounts are frozen by the tax authorities,” Mallya said.

He added,”I have been working tirelessly to urgently resolve this issue through negotiation and I hope that these efforts will be successful early next week. We fully intend to pay our tax dues as much as we commit to paying your salaries,” he said.

According to latest figures,Kingfisher has suffered a loss of Rs 1,027 crore in 2010-11 and has a debt of around Rs 7,057 crore. Struggling with fewer flights,unpaid salaries and outstanding dues to oil companies,the ailing carrier has posted a Rs 444 crore loss for the third quarter.

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