Published on Tue, Feb 07, 2012 at 16:12 | Source : CNBC-TV18
Updated at Tue, Feb 07, 2012 at 17:53
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GoM approves AI debt recast plan with riders
The Group of Ministers has approved the Air India debt recast plan, reports CNBC-TV18. According to the new plan, Air India will be infused Rs 28,000 crore equity over 10 years with a mixture of cash credit, long-term debt and bonds.
The Group of Ministers has approved the Air India debt recast plan, reports CNBC-TV18. According to the new plan, Air India will be infused Rs 28,000 crore equity over 10 years with a mixture of cash credit, long-term debt and bonds.
The national carrier will be allowed to issue worth Rs 7400 crore. The debt conversion includes long-term debt worth Rs 11000 crore and cash credit of Rs 3900 crore.
The proposal for the debt recast will be taken up by the cabinet today.
Meanwhile, the GoM has rejected conversion of debt into cumulative redeemable preference shares CRPS as banks were uncomfortable with it.
