Apparently the shares for Kingfisher Airlines just recently sunk this week after a decision to seek up to $1 billion to pare high debt. Kingfisher, which is currently the second largest private airline in all of India, said in a recent statement that it would riase up to $250 million through Global Depository Receipts.

Right now Kingfisher Airlines actually operates some 66 planes. The company plans to also raise $106 million through domestic share offerings in the next four months. On top of all of this, United Breweries, which is the company that controls the airline, will convert loans of around 6.5 billion rupees to Kingfisher into preference shares.

This big announcement comes just following a resolution approved by the board to issue fresh capital to the airline. This capital was going to be given by way of preference shares, equity shares and GDRs.

Just like many other global carriers, Kingfisher has been in the red for much of 2010. They reported a net loss of some 1.87 rupees for the June quarter. However, the airline is expecting a reversal of its bad luck come the second half of the year.

The Center of Asia Pacific Aviation, however, has warned that he biggest obstacle to this turnaround is the airline’s $1.5 billion debt mountain. Interest payments presently total about a fifth of all costs to running the airline.

The airline went on to employee Citibank, Morgan Stanlye, UBS, and CLSA to oversee the restructuring of the company. However some experts say that it is going to take more than that for this airline to stay afloat.