Lenders likely to meet Air India officials tomorrow

New Delhi: The lenders of Air India are likely to meet officials of the cash-strapped airlines on Monday, days after RBI approved its debt restructuring plan. Air India had last week got a boost with Reserve Bank of India (RBI) approving extension of its loan tenures from 10 to 15 years.
Under the Rs 18,000 crore Corporate Debt Restructuring (CDR) proposal, the lenders are to take a decision on extending the tenure of Rs 11,000 crore short-term loans into long term loans of 15 years and convert Rs 7,000 crore debt into equity.
Sources said, the bankers led by SBI are likely to meet Air India officials tomorrow.
The beleaguered national carrier has accumulated debt of over Rs 64,000 crore from 14 lenders which, under the aegis of SBI Caps, had submitted a restructuring proposal to RBI seeking its permission to extend the loan tenures, among other issues.
27/11/11 PTI/Economic Times

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Categories: Air India Nov 2011