Air India accepts CDR package

Mumbai: National air-carrier, Air India, on Wednesday said that it has accepted the corporate debt restructuring (CDR) package first prepared by SBI Caps and then vetted by Deloitte.

"Air India has accepted the CDR package submitted by Deloitte," the airline`s Chairman and Managing Director, Arvind Jadhav, told reporters here.

The package was approved after several confabulations with banks and the Government, he said.

"We are going to meet the bank consortium and will soon announce the details," the Air India chief said.

In early-December, Air India had appointed global consultancy firm Deloitte to vet the SBI Caps-prepared financial restructuring plan. The firm, after going through the proposal, has now submitted it to Air India.

While asking Deloitte to vet the SBI Caps report, Air India claimed the foreign agency was appointed mainly to vet the business plan as an independent aviation consultant before the restructuring plan was submitted to the Reserve Bank.

Air India is saddled with a debt of about Rs 40,000- crore of which Rs 18,000-crore is working capital loans taken from a consortium of banks while the balance Rs 22,000-crore worth of loans is towards payment of new aircraft ordered.