New Delhi: A panel of India's federal cabinet will discuss the debt restructuring plan of national carrier Air India Ltd. at its next meeting, Aviation Minister Ajit Singh said Tuesday.
"The Cabinet Committee on Economic Affairs needs to approve the Air India debt recast plan before it is implemented by banks," Singh told reporters. He didn't say when the panel will meet next.
The loss-making carrier is restructuring Rs 180 billion (USD 3.5 billion) of its total debt of more than Rs 400 billion. The debt recast plan also includes raising up to Rs 74 billion by Air India by issuing bonds or other instruments that will be backed by a federal government guarantee.
The government would also cover Air India's losses of INR45 billion via cash infusions and back long-term loans of INR170 billion to INR180 billion raised for purchasing planes.
27/03/12 ZeeNews
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