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Apr 12, 2012, 06.03 PM IST
In what may come as a big relief to Air India, the Cabinet Committee on Economic Affairs (CCEA) has okayed the restructuring plan of Air India which was earlier approved by State Bank of India-led consortium last month, say CNBC-Tv18 sources.
In what may come as a big relief to Air India, the Cabinet Committee on Economic Affairs (CCEA) has okayed the restructuring plan of Air India which has been approved by State Bank of India-led consortium last month, says civil aviation minister Ajit Singh A consortium of 19 banks, led by SBI, has approved the financial restructuring plan of Air India. The plan included debt restructuring of Rs 18,000 crore by the banks and a committed equity infusion by the government, required Cabinet approval. Of the Rs 22,000-crore high-cost working capital debt of the airline, banks will restructure nearly Rs 18,000 crore — Rs 10,500 crore will be converted into long-term debt with a repayment period of 10-15 years and the remaining Rs 7,400 crore (approximately) will be repaid to banks through a government-guaranteed bond issue. As part of AIs restructuring, the government has decided to infuse Rs 30,000 crore as additional equity by 2020, said Singh.
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