AI lenders approve Rs 18K cr debt restructuring plan

Sources told The Indian Express that these debentures would carry a coupon rate of 8.5-9 per cent and financial institutions may subscribe to these bonds.

The exercise is part of the national carriers financial restructuring plan that was also approved by the Group of Ministers on February 7,2012. The final decision on the bonds will require the Cabinets clearance.

The national carrier,latest figures show,has outstanding loans worth Rs 43,200 crore,of which Rs 21,200 crore is short-term working capital loan,Rs 22,000 crore is long-term loan on aircraft acquisition,Besides these loans,it owes Rs 4,600 crore to its suppliers and has accumulated losses to the tune of Rs 20,320 crore. The airlines debt recast plan ran into trouble after the banks refused to convert a part of the short-term debt into equity,which led to the GoM clearing the proposal for bonds or non-convertible debentures,an AI executive said.