Air India seeks bondholders’ consent to advance maturities at a premium
National carrier Air India has sought bondholders’ consent to advance the maturity deadline of two particular series of bonds sold in September 2011 ahead of the airline’s impending takeover by the Tata Group.
ET has seen copies of those letters sent to bondholders that include wealthy individuals and retirement funds. The carrier had raised about Rs 5,500 crore through these instruments.
Although the securities do not have any put and call options, such a move has led some investors to call this an “unprecedented move”. The company has tried to ensure that bondholders suffer no losses, having revised the terms of repurchase.
