Mumbai/New Delhi: Cash-strapped Air India on Thursday got a boost with Reserve Bank of India approving extension of its loan tenures from 10 to 15 years.
"Yes, RBI has cleared our loan restructuring proposal today," an Air India official said, but refused to elaborate.
He said RBI has approved extension of the loan tenures to 15 years from 10 years.
The decision, which would considerably ease the debt servicing burden of the troubled airline, was taken at a meeting that was attended by officials of the RBI, Air India and SBI Caps which has submitted the debt restructuring proposal.
When contacted, RBI spokesperson confirmed the meeting but refused to elaborate any further.
Under the Rs 18,000 crore Corporate Debt Restructuring (CDR) proposal, the lenders would extend the tenure of Rs 11,000 crore short-term loans into long term loans of 15 years and convert Rs 7,000 crore debt into equity.
In Delhi, official sources said discussions with RBI were being carried out on various issues, including on Air India's balance sheet, financial position and future projects.
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