The board of the troubled Indian aviation firm, Kingfisher airlines is scheduled to meet today before the company's second quarter results are announced and is expected to discuss ways to reduce the whooping Rs. 7,000 crore debt on the company.

The airline might consider selling assets and converting loans into equity to raise funds. It might also look at a preferential issue and the promoter, UB Group may seek to convert Rs. 675 crore debt into equity. The board meeting comes before the airline management is expected to meet major lenders on Tuesday.

On the news of the board meeting, the shares of the company rose 6 per cent on Monday indicating that the investors believe that board can solve the issues faced by the company. The shares of the company had fallen to its lowest level ever on Friday.

Kingfisher, India's second biggest airlines, is believed to be unable to raise money from the capital or debt market and it is becoming increasing difficult for the company to pay for fuel for its flights. Company staff has been dwindling as employees had lost faith in the airlines future. The airline had delayed making salary payments for August and September upsetting many employees and making them think about leaving their jobs.

Kingfisher is also facing severe fuel shortages as it has been available to pay its fuel bills. Hindustan Petroleum had suspended fuel supply to the airline causing disruptions as the airline was not able to pay a bill of Rs 130 crore.

Meanwhile, Sanjay Aggarwal, the CEO of the troubled Kingfisher Airlines has affirmed that the company is till viable and will continue to do business.