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 have converted their loans for an additional five per cent equity last week.
In a letter to the employees, Mallya also lashed out at "Indian and 'paid' media" for their reports on the cash- strapped carrier, saying they would do whatever it takes to achieve their "sensationalist objectives".
"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 while referring to the "media frenzy" on the recent developments in the airlines.
"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.
"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 Rs 7,057.08 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.
Mallya said that Kingfisher promoters, the
UB Groupand its associates have converted its loans for an additional five per cent equity in the airlines last week.
"This is the maximum permitted under law in any one financial year but clearly demonstrates the faith that I have in all of you and in our company," he said. (more)
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