Bankers expect AI turnaround plan in next 3 months

The lenders of Air India today said they expect a final blueprint of the turnaround strategy for the ailing national carrier within the next three months.

Speaking to newsmen after a meeting with the Air India management, led by Chairman and Managing Director Arvind Jadhav, at the airline headquarters here this morning, they said SBI Caps, which was mandated last year by a consortium of nearly 10 lenders to thrash out a turnaround strategy for the airline, made a presentation to them.

"It was the first meeting that all the lenders had with the AI management. SBI Caps and Deloitte made a presentation to us. We have to get back to them with our views. Hopefully we will have the second meeting in 10 days," Bank of Baroda general manager Arun Tiwari said.

On whether they are happy with the presentation made by SBI Caps and Deloitte, Bank of Baroda general manager for wholesale banking N Ramani answered in the affirmative and added that "almost 90% of the proposals are fine with us and we are keen that the airline in back to good health."

On whether the proposal is to recast only the Rs 18,000 crore working capital loan, Ramani said, "This is not a piecemeal proposal. Whether working capital or other loans, loans have to be serviced. We have no problem in restructuring the entire Rs 40,000 crore debt of the national carrier, because despite challenging times, they have not defaulted on a single payment to us so far."

"It was a preliminary meeting. We cannot share the details. We will me meeting them many more times. Once we lenders and the company management agree on the final proposal, it will go to the government and Reserve Bank and then we will have the turnaround plan rolling," said Punjab & Sind Bank general manager HP Singh.

Airline Chairman Jadhav and SBI Caps representative did not meet the media.