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Kingfisher Airlines Announcement

Kingfisher Airlines

Mumbai, November 25, 2010 - Kingfisher Airlines Limited has informed the Bombay Stock Exchange that the Board of Directors of the Company at its meeting held on November 25, 2010, has approved a Debt Recast Package (DRP) with lending banks, following a one-time relaxation in restructuring guidelines sanctioned by the Reserve Bank of India. The salient features of the DRP include:

(1) Conversion of debt of upto Rs. 1355 crores from lenders into share capital.
(2) Conversion of debt of upto Rs. 648 crores from promoters into share capital.
(3) Reschedulement of repayment of the balance debt to lenders over 9 years with a moratorium of 2 years.
(4) Reduction in interest rates.
(5) Sanction of additional fund and non-fund based facilities by the lenders.

While Board sanction has been received from several lenders, the same is shortly expected from the others. The DRP is subject to execution of necessary documentation.

In order to give effect to the DRP mentioned above, the Board of Directors at its Meeting held on November 25, 2010, has resolved as follows, subject to the above approvals and subject to the approval of the shareholders and such other regulatory and other approvals as may be required:

1. To issue and allot up to 57,50,00,000 (Fifty Seven Crores Fifty Lakhs only) 8% Redeemable Cumulative Preference Shares of Rs. 10/- each redeemable at par at the end of 12 years, to the members of the consortium of lenders in consideration of the extinguishment of the amount due to the members of the consortium of lenders under various loan facilities availed by the Company.
2. To issue and allot up to 78,00,00,000/- (Seventy Eight Crores only) 7.5% Compulsorily Convertible Preference Shares of Rs. 10/- each to the members of the consortium of lenders in consideration of the extinguishment of the amount due to the members of the consortium of lenders under various loan facilities availed by the Company.
3. To amend the terms and conditions of 97,00,000 (Ninety Seven Lakhs only) 6% Redeemable Preference Shares of Rs. 100/- each issued to United Breweries (Holdings) Ltd. (Promoter Company), inter alia, to convert these shares to 9,70,00,000 (Nine Crores Seventy Lakhs only) 6% Compulsorily Convertible Preference Shares of Rs. 10/- each.
4. To issue and allot upto an aggregate of 64,80,00,000/- (Sixty Four Crores Eighty Lakhs only) 7.5% Compulsorily Convertible Preference Shares of Rs. 10/- each to United Breweries (Holdings) Ltd. and to Kingfisher Finvest India Ltd. (Promoter Companies) in consideration of the extinguishment of the amount due to United Breweries (Holdings) Ltd. and Kingfisher Finvest India Ltd., from the Company.
5. To issue and allot upto 2,00,00,000/- (Two Crores only) 8% Optionally Convertible Debentures of Rs. 100/- each to Star Investments Ltd. in consideration of the extinguishment of the amount due to Star Investments Ltd. from the Company.
6. To issue and allot upto 3,00,00,000/- (Three crores only) 8% Optionally Convertible Debentures of Rs. 100/- each to Margosa Consultancy Pvt. Ltd. in consideration of the extinguishment of the amount due to Margosa Consultancy Pvt. Ltd. from the Company.
7. To issue and allot upto 3,00,00,000/- (Three Crores only) 8% Optionally Convertible Debentures of Rs. 100/- each to Redect Consultancy Pvt. Ltd. in consideration of the extinguishment of the amount due to Redect Consultancy Pvt. Ltd. from the Company.

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