The two airlines, Air India and Vistara, which are controlled by Tata, have requested approval from their creditors to consolidate. The Economic Times (ET) reported on Thursday that the creditors’ vote on the proposal will take place on September 23.

According to sources, Air India and Vistara will apply for authorisation from the Registrar of Companies and the aviation watchdog DGCA after receiving consent from creditors. The National Company Law Tribunal (NCLT) and the Competition Commission of India (CCI) have previously approved the merger plan.

In a merger proposal submitted to the CCI in April, Tata Sons and Singapore Airlines (SIA) claimed that the combination of Vistara and Air India would not alter the competitive environment or have a materially negative impact on competition in India. By March 2024, they hoped to have completed the merger.

While Vistara is a 51:49 joint venture between Tata Sons and SIA, Air India is owned entirely by Tata Sons.
Permissions will be requested from both secured and unsecured creditors, according to the letter. Banks are typically considered secured creditors, as opposed to vendors, lessors, and other unsecured creditors.

Source- Travel biz
Link- https://travelbizmonitor.com/creditors-to-vote-on-merger-proposal-of-air-india-vistara-on-sept-23/