Air India to hire SBI caps for debt rejig

National carrier Air India will be hiring SBI caps to advice them on debt restructuring. The new finance sub committee which comprises of Anand Mahindra & Harsh Neotia which met last week had decided to restructure its debt. Air India's working capital debt is a staggering Rs 17,000 crore for which it pays an average of 11 percent interest. Air India wants to bring this down to 8 percent. This would help the airline in saving up to Rs 450 crore every year. ‘Air India has an exposure to 12 banks for this debt.
The committee wants to bring down the exposure to 4 banks. This would also help in bringing down the interest we pay on the debt’ said an Air India official who did not want to be named.
13/05/10 Sameer Hashmi/Economic Times

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Categories: NACIL May 2010