Air India nod for corporate debt recast plan

Unfazed by a major reshuffle in its management, the turnaround plan drawn by cash-strapped Air India (AI) is on track, its senior executive said on Wednesday. About 20-25% of the total turnaround plan has been completed since the plan was drawn in 2009, Arvind Jadhav, chairman and managing director, said.

Jadhav also said AI’s board has approved the corporate debt restructuring (CDR) package prepared by SBI Caps and vetted by Deloitte. “We have approved the plan. We would now be taking it to the banks, the RBI and the government,” he said. AI’s total debt burden is around Rs40,000 crore.

AI announced a turnaround plan in 2009, with a couple of modifications added over one year.

Jadhav said, “financial re-engineering” is the important thing to be looked at now, adding that the turnaround would be a long-term process.

The turnaround plan set a target to achieve operational restructuring and financial restructuring by FY10. This was to be followed by business restructuring and brand building along with an initial public offer (IPO) in FY11. An additional public offer by FY12 had also been envisaged in the plan.