Air India buyer has to take over interest-bearing debt of Rs 165 billion

Additionally, a large portion of the debt are aircraft related, meaning they are backed by aircraft value

A potential buyer of Air India will take over an interest-bearing debt of around Rs 165 billion. A large portion of the debt is backed by assets like aircraft that Air India owns. Interest-bearing debt is the portion of the debt on which banks charge interest.

According to the preliminary information memorandum shared by the government, a debt of Rs 333.92 billion will remain on the company’s books, while the rest will be hived off into a separate asset-holding company. It includes current liabilities, which have been incurred in the natural course of business.

According to people close to the