Air-India that was doing pretty good at one time is looking for investments now. It is having so much debt over it that it will have to raise it through other sources. The total amount that Air India is looking for is Rs 6,150 crore. And this amount they are raising as a short term loan. The airline company has a huge debt for its seven aircraft. Out of these seven, six are Boeing 787 and one is Boeing 777.
Earlier, there was no possible way for the airline to raise funds. It was trying its best but that all was going in vain. It has to meet certain requirements to get privatize. And the government is acting as a stress buster for the airline company. This is because the government has agreed to guarantee these loans.
Official Statement of the Official
“The approval for guaranteeing the loans for one year is a huge relief as the airline still has working capital and other requirements by the time that it gets disinvested,” the official further said.
A tender is issued by the company. And in this tender, banks will submit their bids by November 20. Air India is going for seven tranches to repay the debt over it. And these are three of Rs 790 crore each, three of Rs 925 crore each, and one of Rs 1,005 crore.
Earlier, the company was looking to raise funds through the central government. They were trying to raise around Rs 500 crore. And for the same, they prepared a proposal too. But due to this covid, the government didn’t approve of it.
A month ago, with an end goal to pull revenue in the disinvestment cycle, the Center had changed the offering boundaries to permit the likely bidders to choose the degree of obligation they need to take on alongside the aircraft.
Earlier Bidding Dates for Air India
The primary cutoff time for submitting offers during the administration’s endeavor to sell its whole 100% shareholding in Air India — alongside Air India’s 100% holding in Air India Express, an ease transporter, and 50% offer in Air India-SATS, a joint endeavor wherein Singapore Airport Terminal Services holds the equilibrium 50% — was March 17.
Be that as it may, because of the pandemic, this cutoff time was expanded on numerous occasions till October 30. A month ago, it was additionally reached out to December 14.