More woes for AI as banks deny funds

New Delhi: State-owned Air India's financial woes have further compounded with the banks denying it funds due to non-payment of interest on working capital loans of R21,200 crore. The refusal of its lenders is expected to adversely affect the airline's ability to run its normal operations.
Air India has approached the government for cash either in the form of equity or clearing of dues amounting R373 crore. The airline is likely to present on Tuesday its financial position before a high-level committee which comprises secretaries from the finance and the aviation departments.
"Banks have threatened to put the airline on credit hold. We have not paid an interest of R374 crore to banks on working capital loans. If the payment is not done within 90 days since due date it would be considered non-performing asset as per RBI rules," a senior Air India official said.
12/07/11 Nirbhay Kumar/Financial Express

To Read the News in full at Source, Click the Headline

Categories: Air India Jul 2011