May 16 2001
India's soon-to-be privatized national (and mainly domestic) airline, Indian Airlines, has demanded a $1.5 million penalty fine from GIA Limited, a US-based international leasing company, for failing to deliver five Boeing 737 aircrafts on time.
Indian Airlines is floating fresh tenders for the dry leasing of aircraft for its subsidiary, Alliance Air. The details will be finalized after negotiations with GIA as to new delivery dates for the aircrafts.
Indian Airlines is expanding its fleet and has given the government an ultimatum, stating that if privatization is delayed beyond May 31 2001 then it must proceed with the acquisition rapidly. If it does not receive government funding, Indian Airlines intends to turn to the debt market.
Meanwhile, Jet Airways, a private Indian airline, is acquiring one new Boeing 737 each quarter through a special purpose company.
Reliance Petroleum Limited has concluded a syndicated foreign currency term loan of $750 million. The proceeds will be used mainly for capital expenditure. Reliance has set up a refinery to process crude and other petroleum products. The deal will be approved by the government and will be underwritten by ABN Ambro, Grindlays, Bank of America, Citibank, HSBC, Stanchart and Toronto Dominion. Analysts state that the deal will have a BB rating.
ICICI, an Indian bank, is planning to securitize its assets as part of a balance-sheet management exercise. The bank is the first institution in India to undertake this excercise. A bill on securitization is likely to be introduced in Parliament soon.
For further information on this topic please contact Ravi Nath at Rajinder Narain & Co by telephone (+91 11 506 5000) or by fax (+91 11 506 3580) or by e-mail (email@example.com).
ILO provides online commentaries as specialist Legal Newsletters. Written in collaboration with over 500 of the world's leading experts and covering more than 100 jurisdictions, it delivers individually requested information via email to an influential global audience of law firm partners and international corporate counsel. Please click here to register for the service.
The materials contained on this website are for general information purposes only and are subject to the disclaimer.
ILO is a premium online legal update service for major companies and law firms worldwide. In-house corporate counsel and other users of legal services, as well as law firm partners, qualify for a free subscription. Register at www.iloinfo.com.