Jet Airways is neck deep in debt and has once again turned to Etihad to raise funds, but, this time the stakes could be higher. Sources with direct knowledge share that Jet Airways is in talks with Etihad to raise $300-400 mn via convertible bonds. On conversion Etihad could raise its stake in Jet up to 49% from 24% currently.
Negotiations on valuations are currently on between the parties and the deal is expected to be closed by March 31, 2016, a source said. People in the know also shared with ET Now that the conversion of bonds could be in 2018-19 period
Jet Airways has debt of $1.7 bn or Rs 11,000 cr and is under pressure to de-leverage its balance sheet. Jet intends to use the funds largely to pare down debt and a part of it could be used for expansion in operations, sources indicated.
06/01/16 Nisha Poddar/Economic Times
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Negotiations on valuations are currently on between the parties and the deal is expected to be closed by March 31, 2016, a source said. People in the know also shared with ET Now that the conversion of bonds could be in 2018-19 period
Jet Airways has debt of $1.7 bn or Rs 11,000 cr and is under pressure to de-leverage its balance sheet. Jet intends to use the funds largely to pare down debt and a part of it could be used for expansion in operations, sources indicated.
06/01/16 Nisha Poddar/Economic Times
