Lenders of cash-strapped Air India on Friday approved its corporate debt restructuring plan worth Rs 18,000 crore and decided to provide a fresh cash credit of Rs 2,200 crore.
Of the Rs 18,000-crore debt restructuring plan, Rs 7,400 crore worth of non-convertible debentures, guaranteed by the government, would be issued, banking sources said here. They said the 13-bank consortium led by State Bank of India has also agreed to give Rs 2,200 crore worth of fresh working capital loan to the carrier.
The approval by the banks came 10 days after a group of ministers, headed by finance minister Pranab Mukherjee decided to allow Air India to raise Rs 7,400 crore by issuing sovereign guaranteed non-convertible debentures.
The debentures are likely to carry a coupon rate of 8.5-9% and financial institutions may subscribe to these bonds, official sources said. This would be part of the national carrier’s restructuring plan.