To recover its loans from Jet Airways, state-run lender SBI is mulling moving National Company Law Tribunal as it feels the airline is running out of funds for operations, even as shareholders of the debt-laden carrier have approved a debt rejig plan, officials said.
Shareholders of Jet Airways have approved conversion of loan into shares and other proposals during the Extraordinary General Meeting (EGM) on Thrusday.
A consortium of banks, led by the SBI, has extended loans to Jet Airways, which is looking to rejig debt and raise funds.
Officials associated with the lenders and key shareholders said the SBI is considering moving the National Company Law Tribunal (NCLT) seeking insolvency proceedings against Jet Airways since it is running out of money for operations.
Lenders can initiate proceedings under the Insolvency and Bankruptcy Code (IBC) to recover dues from debt-laden entities. The process can commence only after approval from the NCLT.
Lenders can initiate proceedings under the Insolvency and Bankruptcy Code (IBC) to recover dues from debt-laden entities. The process can commence only after approval from the NCLT.
The officials said that Gulf carrier Etihad, the strategic partner with 24 percent stake in Jet Airways, abstained from voting on various proposals during the EGM held on February 21.
According to them, Etihad is waiting for clarity on the overall funding that the SBI and National Investment and Infrastructure Fund (NIIF) would provide for Jet Airways in terms of equity.
The Gulf carrier has been pitching for the SBI and the NIIF to own 51 per cent and invest Rs 2,200 crore into the airline, they added.
24/03/19 PTI/Moneycontrol.com
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Shareholders of Jet Airways have approved conversion of loan into shares and other proposals during the Extraordinary General Meeting (EGM) on Thrusday.
A consortium of banks, led by the SBI, has extended loans to Jet Airways, which is looking to rejig debt and raise funds.
Officials associated with the lenders and key shareholders said the SBI is considering moving the National Company Law Tribunal (NCLT) seeking insolvency proceedings against Jet Airways since it is running out of money for operations.
Lenders can initiate proceedings under the Insolvency and Bankruptcy Code (IBC) to recover dues from debt-laden entities. The process can commence only after approval from the NCLT.
Lenders can initiate proceedings under the Insolvency and Bankruptcy Code (IBC) to recover dues from debt-laden entities. The process can commence only after approval from the NCLT.
The officials said that Gulf carrier Etihad, the strategic partner with 24 percent stake in Jet Airways, abstained from voting on various proposals during the EGM held on February 21.
According to them, Etihad is waiting for clarity on the overall funding that the SBI and National Investment and Infrastructure Fund (NIIF) would provide for Jet Airways in terms of equity.
The Gulf carrier has been pitching for the SBI and the NIIF to own 51 per cent and invest Rs 2,200 crore into the airline, they added.
24/03/19 PTI/Moneycontrol.com
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