Air India Buyer Will Take Over Interest-Bearing Debt Of Rs 16,500 Crore

The firm that buys the debt-ridden national carrier Air India (AI), in which the government intends to sell a 76 per cent stake, will have to take over an interest-bearing debt of around Rs 16,500 crore, Mint has reported.

Air India Asset Holding Limited, which is 100 per cent owned by the government, will be responsible for the balance debt.

“While the total debt being passed on to the new buyer stands at Rs 33,392 crore, this headline number includes components such as current liabilities and financial lease. The current liabilities, which stand at Rs 8,816 crore, have been incurred in normal course of business and then you have another component of Rs 8,000 crore for financial lease of aircraft,” an official was quoted by Mint as saying.

Actual interest-bearing debt the buyer will be responsible for will comes down to around Rs 16,500 crore as financial lease can be terminated to get out of the liability, the person cited above told the daily.