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Debt Laden Air India Case Study

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Debt Laden Air India Case Study
To be sure, it will not be easy for the government to privatize the debt-laden Air India. It will have to work with professionals and investment bankers to find ways and make the deal reasonably attractive for a prospective buyer. It will have to bring down the level of debt in the company. This can possibly be done by selling non-core assets. For example, one of its subsidiaries—the Hotel Corporation of India—runs hotels which can be sold to reduce debt. The government can infuse equity capital one last time to bring down the debt and make it attractive for potential buyers. If the financial institutions are willing, a part of the debt can be converted into equity. The government could also choose to start by selling a minority stake in the
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