Thursday, January 10, 2019

Jet Airways: Lenders offer Rs 2,500 crore resolution plan

Domestic lenders of the beleaguered carrier Jet Airways, led by State Bank of India, are understood to have proposed a Rs 2,500-crore resolution plan comprising fresh equity infusion and restructuring of the current loan at a meeting between the consortium of banks and Jet officials on Tuesday.
Sources in the know of development told FE that if the resolution plan gets approved by the lenders, Jet Airways promoter-chairman Naresh Goyal’s current 51% equity in the company will get diluted and come to below 20%. According to the contours of the proposal by the lenders, Jet and Abu Dhabi-based Etihad Airways, which currently has a 24% stake in the carrier would be required to infuse Rs 1,500 crore into the airline. The lenders on their part will restructure loans worth Rs 600 crore and Goyal in his personal capacity would be required to bring in Rs 400 crore.
With this, Etihad’s stake would rise to 30% from the existing 24% and the debt restructuring by the lenders, by converting a part of debt into equity and some fresh funds, would give them a stake of around 40%. Sources said that since the conversion of debt into equity will be below par, there will be a significant dilution of the existing shareholders’.
10/01/19 Manisha Singhal/Financial Express