On Thursday, an airline source told PTI that it has secured the needed amount from banks with government guarantee to pay interest to investors. However, how much money has been raised or the amount needed to pay, has not been disclosed.
A reply to a mail sent to an Air India spokesperson for confirmation is awaited.
According to the source, Air India has secured short-term bank loans backed by government guarantee to refinance the entire principal amount of Rs 700 crore of NCDs. These debentures are due for interest payment or redemption on March 26.
The airline needs Rs 30 crore to pay the interest.
The issuer's account was not provided for the same as of March 25, according to IndiRa report. The amount was on rating watch negative since March 23, which reflects delays in funding the designated account as on March 23, as confirmed by the trustee IDBI Trusteeship Services.