Air India is in talks with public sector banks led by State Bank of India for restructuring its working capital loan of Rs 21,000 crore, a top Air India official said today.
"The turnaround plan has been presented to the lenders and is being brought in line with the 2010-2011 achievement. The plan envisages that Air India would be made EBITDA (earnings before interest, taxes, depreciation, and amortisation) positive in 2012 and cash positive by 2014. The idea is to achieve a load factor of 71 per cent on the international sector, and 75 per cent on the domestic sector," the official said as per a PTI report.
The turnaround plan seeks to convert 60 per cent of the current working capital into long term debt of 10 years with a fixed coupon rate of 10.5 per cent, while the remaining 40 per cent of the working capital would be converted into a cumulative redeemable preference shares carrying a fixed rate of interest of eight per cent.
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