Tata, SpiceJet promoter shortlisted for Air India bids

MUMBAI/NEW DELHI: Tata Group and SpiceJet promoter Ajay Singh have been shortlisted for the bid to buy out Air India, said people familiar with the development.
The two will now have to submit financial bids after completing due diligence on the national carrier’s books, agreements and liabilities. In their financial bids, the parties have to state the quantum of AI’s debt they will be willing to take up and the upfront payment they will make for the asset. Whoever quotes the highest economic value for AI will be the winner of the bid.
At least 15% of AI’s enterprise value has to be paid in cash and the balance can be taken as debt. AI has a debt of over Rs 90,000 crore. It is estimated that the national carrier would report a Rs 10,000 crore loss this fiscal.