Cabinet approves bailout plan for AI
New Delhi, Apr 12: The ailing state-run carrier Air India received much needed shot in the arm today when the Union Cabinet approved a turnaround plan for it.
Talking to mediapersons here, Civil Aviation Minister Ajit Singh said the government proposed to inject Rs 30,000 into the beleaguered airline by 2020 by way of the bailout package.
“The airline will be allowed to convert Rs 7,400 crore of debt into non-convertible debentures, which will be guaranteed by the government. The government will also pay the interest on these NCDs,” he said.
“The Cabinet has also decided to induct 27 Dreamliner aircraft as per previously drawn scheduled,” Singh added.
Presently, Air India has outstanding loans and dues worth Rs 67,520 crore, of which Rs 21,200 crore is working capital loan, Rs 22,000 crore long-term loan on fleet acquisition, Rs 4,600 crore vendor dues, besides an accumulated loss of Rs 20,320 crore.
In addition, Air India owes money to a consortium of 14 banks led by SBI, Bank of India, PNB, Bank of Baroda, Central Bank of India, and Oriental Bank of Commerce, among others.
Bankers had earlier approved a debt restructuring plan aimed at returning debt-laden Air India to financial health.
Earlier, the lenders had proposed a debt restructuring plan that would allow the airline to convert Rs 21,000 crore of working capital loans from 26 banks into long term loans of 10 to 15 years. In addition, Singh said the airline could also raise Rs 7,400 crore through bonds.
Lastupdate on : Thu, 12 Apr 2012 21:30:00 Makkah time
Lastupdate on : Thu, 12 Apr 2012 18:30:00 GMT
Lastupdate on : Fri, 13 Apr 2012 00:00:00 IST
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