Air India defaults on loan repayments for third month in a row: reports
Air India has reportedly again defaulted on its loan repayments for a third consecutive month (TNN/The Hindu Business Line/Economic Times, 28-Jul-2011). Since Apr-2011, the carrier has reportedly been defaulting on payment of interest on working capital loans as well as service tax. The carrier's unpaid interest liability to lenders has now reportedly increased to around INR7 billion (USD159 million) for the Apr-2011 to Jun-2011 period. The carrier has requested the Finance Ministry release the dues the government owes the carrier to enable the payments. Meanwhile, the carrier's lenders reportedly want to the carrier to be classified as a non-performing asset although the government has not provided backing on this issue.