New Delhi: Government-run airline Air India is burdened with debt. The company has a huge cash crunch. The oil companies have stopped supplying fuel to the company due to inability to pay. The government has planned its privatization. The company is now working on a plan to tackle this huge debt. Air India Asset Holding Limited (AIAHL) has raised Rs 7,000 crore by issuing bonds. Air India Asset Holding Limited is the special purpose entity of Air India. Air India's debt will be repaid from the capital raised by issuing bonds on behalf of AIAHL. This is part of Air India's efforts to correct its ledger.
It is known that Air India has more than Rs 58,000 crore in debt. An Air India spokesperson said the bond offering of Air India Asset Holdings was fully subscribed. The company had issued a bond of Rs 1000 crore for three years. Along with this, a provision has been made to accept additional subscription of Rs 6,000 crore under the Green Shoe Option. Air India has received bids worth Rs 20,830 crore. Let us tell you that the government has also tried unsuccessfully to sell Air India last year.
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