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The Reserve Bank of India has approved extension of the tenure of loans to troubled state-run carrier Air India to 15 years from 10 years, two sources with direct knowledge of the matter told Reuters.

Its lenders had submitted a restructuring proposal to the Reserve Bank of India seeking its permission to extend the loan tenure, among other things, the sources said.

Air India, with total loans of $9.5 billion, is in talks with banks to restructure its working capital debt and is in the midst of implementing a turnaround plan to generate cashflows.

A consortium of lenders to the debt-laden carrier are expected to meet on Monday to discuss the loan recast, one of the sources said, adding the process would be completed within 120 days of the approval.

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