The Mumbai International Airport (MIAL), which has been severely hit due to the coronavirus pandemic has sought an extension in payment holiday on loans till March 2022.
The MIAL, also known as Chhatrapati Shivaji International Airport, has sought a reduction in interest rate for all loans and wanted additional term loans for the period ending March 2021, according to a report in Business Standard.
The MIAL has submitted a proposal for restructuring existing loans and working capital facilities and applied for restructuring its real estate deposit loan.
The financial profile of Chhatrapati Shivaji airport has been adversely affected by the coronavirus-induced lockdown and prolonged restriction on airlines' operation. The passengers' footfall in the airport plunged 92 per cent to 18.6 lakh in H1FY21, the daily added.
Meanwhile, the India Ratings (Ind-Ra) has revised the GVK-group backed airport's rating to Rating Watch Evolving (RWE) from Rating Watch Negative (RWN). The rating agency has not recognised non-payment of debt obligations for September and October as default because of the invocation of restructuring ahead of the due dates, as well as the impact of the pandemic on the sector.
This year in August, Adani Group said that it acquired GVK Group's stake in Mumbai airport. Adani Group will have a 74 per cent stake in MIAL, post the stake purchase transaction, with 50.5 per cent being bought from GVK Group and 23.5 per cent from minority partners including Airports Company South Africa (ACSA), and Bidvest Group.
GVK Group has agreed to cooperate with Adani Group regarding the takeover of debt availed of by the former. The Adani Group will take over the ownership of Mumbai airport upon receipt of approvals.
According to Ind-Ra, changes in ownership, along with the approval of the restructuring plan, will have a positive impact on MIAL's ratings. It added that it would analyse the restructuring plan and its impact before taking any further action.