Sunday, September 02, 2018

Air India gets another chance as govt decides to infuse additional Rs 980 crore

Reeling under huge debt, Air India is set to get an additional equity of Rs. 980 crore from the central government. The development comes after the Air India, which does not have money to service debt, had requested the government for an additional capital.

The Economic Times reported that a major part of these funds around Rs. 550 crores will be used to service interest on nonconvertible debentures (NCDs) that are due in September-end. Earlier, as a turnaround plan, Air India has issued government-guaranteed NCDs worth Rs. 7,400 crore to repay bank loans.

One of the senior Air India officials said that "The rest of the money will be used to pay for spares for our planes, which are currently on ground and will soon be flying. We will also be paying our international and other vendors," said a senior Air India official who did not want to be identified.
01/09/18 Ashish Shukla/IBTimes

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