Kingfisher converts 8% of its debentures into equity

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Cash-strapped Kingfisher Airlines has partly converted 8% of its optionally convertible debentures (OCDs), which were issued in January last year, into equity shares.

The carrier's board of directors has issued and allotted 30.3 million of the company's equity shares to Star Investments, upon conversion of 7.2 million OCDs.

At the same time, the board issued and allotted 5.3 million equity shares to Amar Nath Jhunjhunwala, upon conversion of 1.3 million OCDs, says the carrier in a stock exchange statement.

The conversions were made at Rs23.63 per share.

On 10 April, the airline wrote to debenture holders informing them that they are entitled to convert part of their OCDs into equity shares by 13 April.

After the most recent share allotments, the paid-up equity share capital of the company stands at Rs6.1 billion.

The beleaguered carrier has suspended all international services and now operates about 120 daily flights with a fleet of about 20 aircraft.