Air India creditors are discussing a proposal to convert 60% of its Rs 18,000-crore short-term debt into long-term debt with the rest converting into Compulsorily Convertible Preference Shares (CCPS). The move will reduce the airline’s annual debt repayment burden by around 42%. The existing loans, which have a tenure of one year or less, will be increased to 10 years with a one-year moratorium on payment of the principal amount. Out of the Rs 40,000-crore debt, the working capital debt is Rs 22,000 crore. The rest are long-term loans taken to fund aircraft acquisition. The working capital debt has a

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