GoM To Discuss Air India Restructuring Next Week

A proposal for financial restructuring of Air India would come up for discussion at a meeting of a Group of Ministers (GoM) next week, with the national carrier also likely to seek government nod for fleet expansion plan till 2020.

The restructuring plan would also include a proposal for converting its high interest debt to low interest ones and the issuance of a letter of comfort for its lenders -- banks and financial institutions, official sources said here.

The restructuring and turnaround plans, vetted by a Committee of Secretaries, would be placed before the GoM.

The letter of comfort is likely to be issued to ensure that banks and FIIs do not classify Air India's loans as non-performing assets.

From: http://ping.fm/6KWb9