Lenders of Jet Airways seem to be running out of options to revive the ailing full-service carrier, which has a debt of Rs 8,400 crore. In a meeting on Tuesday, the bankers, led by State Bank of India (SBI), decided to wait till May 10 to scrutinise the binding financial bids of the four investors – Etihad, NIIF, TPG Capital and Indigo Partners – who had submitted their Expression of Interest (EoIs). In the Tuesday meeting, the bankers have decided to take a call on the haircut and other operational issues after scrutinising the financial bids that will be submitted by the investors. "The bidders are yet to approach us for haircuts or write-offs," said a banker in the consortium.
Lenders are pinning their hopes on Etihad Airways coming up with a plan. It also needs to be seen how much of investment would be required to restart the operations. With the Reserve Bank of India (RBI) is yet to come out on pricing formula to convert debt into equity and the share price tumbling, bankers have little choice but to wait for the binding financial bids. Bankers will decide on the haircut and the write-offs after seeing the investments that the new bidders intend to make in the airline.
"None of the bidders have approached us for any haircut. When we see their financial plan we can negotiate on the haircut and the write-offs.," said the official. "Some of the banks have a charge on 10 to 13 aircraft. So depending on how much will be the recovery and the financial plan of the bidder, we will decide on the haircut," the official said. But it looks difficult for the airline to resume operations considering the investment that would be required to put its flights back on air.
Meanwhile, the share price of Jet Airways has tumbled 45% in the last few trading sessions. But on Tuesday the airline's shares gained as much 13.08% to hit an intra-day high of Rs 174.95 on the National Stock Exchange over the previous close. But analysts said this was only a speculative move.
24/04/19 Manju AB/DNA
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Lenders are pinning their hopes on Etihad Airways coming up with a plan. It also needs to be seen how much of investment would be required to restart the operations. With the Reserve Bank of India (RBI) is yet to come out on pricing formula to convert debt into equity and the share price tumbling, bankers have little choice but to wait for the binding financial bids. Bankers will decide on the haircut and the write-offs after seeing the investments that the new bidders intend to make in the airline.
"None of the bidders have approached us for any haircut. When we see their financial plan we can negotiate on the haircut and the write-offs.," said the official. "Some of the banks have a charge on 10 to 13 aircraft. So depending on how much will be the recovery and the financial plan of the bidder, we will decide on the haircut," the official said. But it looks difficult for the airline to resume operations considering the investment that would be required to put its flights back on air.
Meanwhile, the share price of Jet Airways has tumbled 45% in the last few trading sessions. But on Tuesday the airline's shares gained as much 13.08% to hit an intra-day high of Rs 174.95 on the National Stock Exchange over the previous close. But analysts said this was only a speculative move.
24/04/19 Manju AB/DNA
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