Friday, January 18, 2019

Banks plan Rs 8,200 crore Jet Airways debt restructuring, may take big hit

Mumbai: The countdown has begun for lenders of Jet Airways, which has now been recognised as a stressed borrower, and will require banks to provide for part of their Rs 8,200 crore exposure to the airline in their Q4 results.

State Bank of India (SBI) on Thursday said that lenders are considering a restructuring plan — an acknowledgement that the loan is not viable in the present form.

RBI norms require lenders to make at least 15% provisions on their exposure once a loan is restructured.

The actual hit could be higher, considering that both promoter Naresh Goyal and Etihad, which holds 24% in the ailing carrier, are unwilling to bring in funds without relief in repayment.

Willing to invest Rs 700 crore, provided my stake does not fall below 25%, says Naresh Goyal

Read Also: Naresh Goyal offers to invest Rs 700 crore in Jet Airways, but with conditions

In a statement issued here, SBI said that besides getting the lender’s board clearance, any restructuring plan will need to be approved by RBI, Sebi and possibly the ministry of civil aviation.

Making matters more difficult for the lenders were fresh conditions imposed by Goyal, who said he was willing to invest Rs 700 crore provided his stake does not fall below 25%, while asking for debt relief.
18/01/19 Times of India

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