Tiger seeks funds

Victoria
By Victoria March 26, 2013 14:24

Tiger seeks funds

Tiger Airways has approached shareholders at an extraordinary general meeting for approval to raise $297 million to fund aircraft purchases needed for expansion and to support its investment in Indonesia’s Mandala Airlines and South East Asian Airlines in the Philippines.
Group chairman J.Y. Pillay has been forced to justify the request for additional funds since its last raised $158.4 million in September 2011.
Pillay said: “Shareholders are entitled to ask why we are again seeking to raise funds… What happened to the $158.4 million that we raised earlier?”
He blamed the need on the effects from the six-week suspension of Tiger Airways Australia in July 2011 and although the ban was lifted, the airline faced restrictions such as a drastic cut in the number of flights it could operate. Normal services resumed only at the end of last year – 18 months after the suspension.
Shareholders gave their unanimous support for Tiger’s plans to offer new shares to existing stakeholders and issue what are called convertible securities, which can be converted to normal shares in the future.

Victoria
By Victoria March 26, 2013 14:24
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