Reuters: Financial Services and Real Estate: Banks approve $3.5 bln loan restructure for Air India - paper

Reuters: Financial Services and Real Estate Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

Banks approve $3.5 bln loan restructure for Air India - paper Apr 1st 2012, 05:48 April 1 | Sun Apr 1, 2012 1:48am EDT April 1 (Reuters) - A consortium of 19 banks, led by State Bank of India, has approved the financial restructuring plan of debt-laden state-run airline Air India, the Business Standard newspaper reported on Sunday. The plan, which includes debt restructuring of 180 billion rupees ($3.53 billion) by the banks and a committed equity infusion by the federal government, will require the central cabinet's approval, the report said citing unnamed officials. Officials at Air India could not be reached immediately for a comment. Of the debt being restructured, 105 billion rupees would be converted into a 10-15 year loans and the rest would be paid to banks through a government bond issue, the report said. "The restructuring plan has been approved by the banks and we hope cabinet approval will come by the middle of April," the report quoted an unnamed Air India official as saying. "That will help reduce our interest outlay substantially in the first year, as we get a moratorium on the loan for the first year." ($1 = 50.9 rupees) (Writing by Kaustubh Kulkarni in MUMBAI, Editing by Jonathan Thatcher) Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions