Government to hive off Air India debt, ground unit into separate entity

Government to hive off Air India debt, ground unit into separate entity

The government has formed a Special Purpose Vehicle (SPV) to transfer a “significant part” of Air India’s debt and its 100% stake in ground handling unit, Air India Air Transport Services Ltd, to reduce the cash-strapped national carrier’s debt burden.  Aviation Secretary RN Choubey said that the stake will be sold to a buyer and the proceeds will be used to pay-off Air India debt, he said. He however refused to quantify the share of Air India’s debt that will be transferred to the new entity. The government had earlier made an unsuccessful attempt to sell 76% in Air India along with 100% stake in the ground handling unit. 

Read More at Bloomberg Quint News date : 28 Nov 2018, Wednesday

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