SBI Caps expects to close AI debt recast plan by Jan-end

Mumbai, Jan 16 (PTI) SBI Caps expects to close themuch-awaited debt restructuring plan of the loss-ladennational carrier Air India later this month or early February.

"We are hopeful of closing this exercise by the end ofJanuary or early next month. We hope Deloitte will submit itsreport soon so that we can meet this deadline. We expect theDeloitte report shortly, "SBI Capital Markets ManagingDirector and Chief Executive S Vishvanathan told PTI.

Early December, the debt-ridden Air India hadappointed global consultancy firm Deloitte to ratify aprospective financial restructuring plan for the company,which was prepared by SBI Caps, the capital markets arm of theState Bank Group, for a reported fee of Rs 25 lakh.

Though the foreign consultant was given one week to 10days time to complete the exercise, according to a top AirIndia official, they are yet to get the vetted report.

"We are yet to get the report from Deloitte," a seniorofficial of the carrier told PTI, seeking anonymity. But hequickly added, "the consultant made some presentations to usalong with a preliminary report, and we are analysing it."

While asking Deloitte to vet the SBI Caps report, AirIndia had claimed that the foreign agency was appointed mainlyto vet the business plan as an independent aviation consultantbefore submitting our restructuring plan to the Reserve Bank.

The national carrier has been saddled with debtrunning into a massive Rs 40,000 crore. Of this, as much as Rs18,000 crore is working capital loan taken from a numberbanks, which extended the loan to the Government-run airlinein consortium. .