Friday, June 08, 2018

Air India looks for Rs 1,000 crore short-term loans

State-run Air India, which has failed to pay salaries to its over 11,000 employees on time for the third month in a row, has sought proposals for short-term loans worth Rs 1,000 crore to meet "urgent" working capital requirements.

The Rs 1,000 crore loan will be drawn in June in one or more tranches, according to the bid document. The airline has requested banks to submit their financial bids by June 13, as per the document.

"Air India is inviting bids for short-term loans (STL) totalling to Rs 1,000-crore to meet its urgent working capital requirement," the bid document said.

The tenure of the loan will be one year (renewable) from the date of availing STL, it said.

Amid fund crunch, during which Air India also had to defer its staff salaries, the airline borrowed Rs 6,250 crore from various banks between September last year and January this year for working capital requirements and other needs.
The debt-ridden Air India, in which government's attempt to sell 76 per cent stake came a cropper last month after it did not get even a single bidder, has not paid salaries for the month of May and a spokesperson had said yesterday that the salaries are expected to be disbursed by next week.
08/06/18 PTI/Economic Times