Sunday, October 16, 2016

Air India mulls Rs. 10,000-crore debt rejig under RBI’s new scheme

Air India, which is operationally profitable now, is looking to rejig debt worth Rs. 10,000 crore under the scheme for sustainable restructuring of bad assets floated by the Reserve Bank.

To further strengthen the ability of lenders to tackle stressed assets and provide an avenue for reworking the financial structure of entities facing genuine problems, the central bank has introduced ‘S4A.’

The Scheme for Sustainable Structuring of Stressed Assets (S4A), introduced in June this year, also came against the backdrop of rising concerns over NPAs in the banking system.

Sources told PTI that Air India is actively looking at the possibility of availing ‘S4A’ to rejig debt to the tune of at least Rs. 10,000 crore.

In case the proposal gets a green signal, it would be first time that a public sector undertaking avails the scheme.

Air India, which has been in the red for the past many years, has posted an operating profit of Rs 105 crore in the last fiscal — first time in a decade. The carrier is also working on ways to bring down its overall debt burden, especially with respect to significant interest outgo.
16/10/16 PTI/The Hindu
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