AI avoids default; secures refinance loan to service Rs 700-cr NCDs
Averting a default, Air India has secured short-term funds to service Rs 700 crore worth non-convertible debentures due for redemption on Thursday, according to a source.
The debt-laden national carrier’s operations and revenue flow have been crippled by coronavirus outbreak, which has also resulted in suspension of domestic and international flights.
On March 23, India Ratings warned that the national carrier may default on the debt payment, given the poor cash flow position after the announcement of the closure of national airspace.
Accordingly, the agency had on the same evening placed the instrument on rating watch with negative outlook.
