Bengaluru: Beleaguered Indian carrier Jet Airways is seeking an $840 million bailout from shareholders and a state-backed fund, Business Television India said here, after earlier approving a deal with its lenders to help plug a billion-dollar funding hole.
Jet will receive 15 billion rupees ($210 million) from the National Investment and Infrastructure Fund in return for a 20 percent stake and it may also seek to raise 45 billion rupees via a rights issue priced at 125-150 rupees per share, the news channel reported, citing unnamed sources.
The funds would come as a huge relief for the airline that is in dire need of money to pay off debt, pilots and aircraft lessors as it also grapples with competition from budget rivals, high oil prices and a weaker rupee.
Jet and the fund were not available for comment on Friday.
On Thursday, Jet said its board had approved a rescue plan in which a consortium led by State Bank of India would swap some of Jet’s debt for 114 million shares, doubling the company’s outstanding stock.
15/02/19 Tanvi Mehta/Reuters
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Jet will receive 15 billion rupees ($210 million) from the National Investment and Infrastructure Fund in return for a 20 percent stake and it may also seek to raise 45 billion rupees via a rights issue priced at 125-150 rupees per share, the news channel reported, citing unnamed sources.
The funds would come as a huge relief for the airline that is in dire need of money to pay off debt, pilots and aircraft lessors as it also grapples with competition from budget rivals, high oil prices and a weaker rupee.
Jet and the fund were not available for comment on Friday.
On Thursday, Jet said its board had approved a rescue plan in which a consortium led by State Bank of India would swap some of Jet’s debt for 114 million shares, doubling the company’s outstanding stock.
15/02/19 Tanvi Mehta/Reuters
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