Air India close to defaulting on loan repayment again
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Air India now faces a risk of being declared a non-performing asset by financial institutions/banks, Times of India reported. It said the debt-laden airline was on the verge of defaulting on payment of installments on working capital loans of about INR 22,000 crore for the third month in a row, following which lenders may take this step. Since April, AI has been defaulting on payment of interest on working capital loans as well as service tax, the report said. The airline’s total debt is over INR 43,000 crore and it owes an additional INR 4,500 crore to vendors like oil companies, airports apart from unpaid wages to employees. The latest survival plan prepared for AI envisages pumping in over INR 43,000 crore into the airline over 10 years along with adding 130-odd planes to its fleet. The paper said this plan has not bene well received by officials who were not convinced that it could be implemented.
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