Monday, January 21, 2019

Etihad may reveal Jet Airways rescue deal this week, banks want Gulf carrier to soften stand

New Delhi: Etihad Airways, which owns a 24 per cent in Jet Airways, is expected to reveal its rescue plans mid this week regarding injecting fund in the debt-laden Indian carrier. “Etihad has agreed to come back by Wednesday. The views are also being put across through diplomatic channels,” a person aware of the matter told the Economic Times.

It may be noted that last week Etihad chief executive officer (CEO) Tony Douglas told the lead lender State Bank of India (SBI) that it would pay a rupee more than Rs 150 a share for infusing fresh capital, and want exit of Naresh Goyal and his family from any management role in the Indian carrier. Several reports suggested that the Abu-Dhabi-based airline also sought exemptions from Sebi on making an open offer and preferential pricing regulation — setting a fair price of Jet stock at Rs 140-150 apiece.
According to the ET report, lenders are not bothered about Etihad’s conditions for a complete departure of founder chairman Naresh Goyal or his family members from Jet management. However, banks want certain other matters have to be taken into account in accordance with banking and securities market norms. These issues include preference pricing, the quantum of fresh capital and extent of transfer of bank loan into equity.