Saturday, September 23 2006 11:37 Hrs (IST) - World Time -

Bangalore: Low cost airline Air Deccan today said it has signed a 'Term Sheet' to raise an additional US$ 100 million from a consortium of bankers in Europe.

"The term sheet has been signed. Lawyers are working on the legal documents. It should happen in a month," Mohan Kumar, Director, Finance, Air Deccan, told reporters after the board approved the deal.

He said four or five bankers were involved and "it is a consortium. It is basically to fund the working capital." Kumar declined to give more details of the deal.

To a query, he said US$ 100 million should be sufficient to take care of the working capital needs. "Part of the money will go for aircraft funding and the rest for market development".

The airline today reported a loss of Rs 3.40 billion for the 15-month-period from April 2005 to June 30, 2006 and a turnover of Rs 13.52 billion.