Kingfisher stock surges 10% as Mallya lists revival plan
Mumbai: Shares of Kingfisher Airlines Thursday rose by nearly 10 percent after its chairman Vijay Mallya wrote a letter to his employees saying the management is making every effort to restart operations.
Following this, shares of the debt-ridden company soared 9.96 percent to touch an upper circuit limit of Rs 14.79 on the BSE.
On the NSE, the stock moved up by 9.7 percent to Rs 14.70.
Employees of the grounded Kingfisher Airlines, who have not been paid for eight months now, had yesterday threatened to file a winding up petition in the court under the Company's Act, if the management did not share its revival plan with them.
The letter, however, did not mention anything about the payment schedule of dues of the employees, but it said that "both plans contain detailed information on key assumptions and funding requirements, including payment of outstanding salaries to employees."
The airline has not paid to its employees since May last year.
Kingfisher is burdened with a loss of Rs 8,000 crore and a debt burden of over Rs 7,524 crore, a large part of that has not been serviced since January.