SBI Caps be expecting to close Air India debt recast plan by Jan-end
SBI Caps expects to close the much-awaited debt restructuring plan of the loss-laden national carrier Air India later this month or early February.
“We are hopeful of closing this exercise by the end of January or early next month. We hope Deloitte will submit its report soon so that we can meet this deadline. We expect the Deloitte report shortly, “SBI Capital Markets Managing Director and Chief Executive S Vishvanathan.
Early December, the debt-ridden Air India had appointed global consultancy firm Deloitte to ratify a prospective financial restructuring plan for the company, which was prepared by SBI Caps, the capital markets arm of the State Bank Group, for a reported fee of Rs 25 lac.
Though the foreign consultant was given one week to 10 days time to complete the exercise, according to a top Air India official, they are yet to get the vetted report.
“We are yet to get the report from Deloitte,” a senior official of the carrier told PTI, seeking anonymity. But he quickly added, “The consultant made some presentations to us along with a preliminary report, and we are analysing it.”
While asking Deloitte to vet the SBI Caps report, Air India had claimed that the foreign agency was appointed mainly to vet the business plan as an independent aviation consultant before submitting our restructuring plan to the Reserve Bank.
The national carrier has been saddled with debt running into a massive Rs 40,000 crore. Of this, as much as Rs 18,000 crore is working capital loan taken from a number banks, which extended the loan to the Government-run airline in consortium.
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