Air India seeks proposals to raise up to Rs 4250 cr in debt
In a world where oil rich nations now call the shots the U.S. giant's tough imperious approach is increasingly a liability.
State-run carrier Air India has invited offers from banks to raise up to $800 million (Rs 4250 cr) via external commercial borrowing and bridge financing, two documents posted on the company's website showed.
A bridge financing of up to $500 million (Rs 2656 cr) will be used to fund its purchases of four Boeing Dreamliners, while the ailing national carrier plans to raise another $300 million (Rs 1593 cr) through overseas debt.
The documents, posted on Air India's website on Monday, showed that the bridge loan will not be covered by the federal guarantee, but the aircrafts or other equivalent means can be used as security.
The government had last month extended a life line to Air India, which is on course to receive a $5.8 billion (Rs 30,815 cr) bailout by 2020. Its 19 lenders are also restructuring $4.2 billion (Rs 22,314 cr) in loans.
The airline was forced to cancel four international flights after about a 100 pilots called in "sick" late on Monday, in a move to mount pressure on the carrier on their demands for exclusivity in flying the Dreamliners.
Copyright @ Thomson Reuters 2012