3-Jan-2012 9:35 AM

Air India confirms board approval of issue of USD1.42bn in preference shares to lenders

Air India stated (29-Dec-2011) its board approved the rearrangement of authorised share capital by issue of preference shares worth INR75 billion (USD1.42 billion) which are proposed to be allotted to the lenders of the working capital as part of the Financial Restructuring Plan. The board was also briefed on the progress made on the carrier's Financial Restructuring Plan. It noted that following the meeting with the lenders on 28-Nov-2011, State Bank of India (SBI), as leader of the consortium has approached Reserve Bank of India for certain additional dispensations in the provisioning norms. A Cabinet note is being moved by the Ministry of Civil Aviation for the purpose of equity infusion in Air India and for approving the Financial Restructuring Plan, the carrier said. [more - original PR]

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