Govt helps Air India avoid default, refinances Rs 700-cr NCDs

The government has come to the rescue of the divestment-bound national carrier Air India, whose operations and revenue are crippled due to the coronavirus lockdown from a default on a Rs 700-crore debt repayment that was due Thursday.

The Rs 700-crore non-convertible debentures of the national carrier were due for redemption or interest payment on Thursday. And till Wednesday, the management was struggling to arrange funds. But the government has come to the rescue of the carrier.

“We have fully refinanced the debt with a short-term financing from a couple of banks,” an Air India source told PTI without offering more details.