After a meeting that lasted through most of the afternoon and evening on Wednesday, lenders to Jet Airways Ltd. are faced with two options — go with a plan put forth by promoter Naresh Goyal or back the minority investor Etihad Airways. Neither option is a slam dunk yet which means that a resolution plan is still to be finalised even as the airline continues to face a cash crunch.
Founder chairman Goyal has proposed to inject Rs 700 crore in the cash-strapped airline, said two people familiar with the discussions held on Wednesday. By bringing in these funds, Goyal is seeking to retain control and his board position in the full-service carrier, these people said. Both spoke on condition of anonymity since talks are confidential. Speaking on the sidelines of an event. State Bank of India chairman Rajnish Kumar confirmed that Goyal had offered Rs 700 crore and wants to retain his stake at 25 percent.
Etihad Airways, which bought 24 percent in Jet Airways in 2013, has a different plan. They are willing to inject between Rs 800-1000 crore along with partners but want Goyal off the board, said the two people quoted above. They are hoping to bring down Goyal’s shareholding to 22 percent, BloombergQuint reported on Tuesday. As per existing rules, a foreign airline can only hold up to 49 percent in a domestic carrier.
Lenders are still assessing both revival plans and seeking details regarding the source of funds in both plans.
17/01/19 Vishwanath Nair/Bloomberg Quint
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Founder chairman Goyal has proposed to inject Rs 700 crore in the cash-strapped airline, said two people familiar with the discussions held on Wednesday. By bringing in these funds, Goyal is seeking to retain control and his board position in the full-service carrier, these people said. Both spoke on condition of anonymity since talks are confidential. Speaking on the sidelines of an event. State Bank of India chairman Rajnish Kumar confirmed that Goyal had offered Rs 700 crore and wants to retain his stake at 25 percent.
Etihad Airways, which bought 24 percent in Jet Airways in 2013, has a different plan. They are willing to inject between Rs 800-1000 crore along with partners but want Goyal off the board, said the two people quoted above. They are hoping to bring down Goyal’s shareholding to 22 percent, BloombergQuint reported on Tuesday. As per existing rules, a foreign airline can only hold up to 49 percent in a domestic carrier.
Lenders are still assessing both revival plans and seeking details regarding the source of funds in both plans.
17/01/19 Vishwanath Nair/Bloomberg Quint
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