Wednesday, May 29, 2019

Jet Airways crisis: Lenders expected to take final decision in two weeks

Jet Airways is now running out of time to regain its wings. The SBI-led consortium of 26 lenders, who are hoping to recover around Rs 8,500 crore from the grounded airline, is reportedly looking to take a final decision on the fate of the grounded airline in the next two weeks before playing its last card, which is filing for bankruptcy.
Meanwhile, the hunt for a new investor is on since that is a precondition for the National Infrastructure Investment Fund (NIIF) to come in and Etihad - Jet Airways' strategic partner with a 24 per cent stake - is not willing to increase its shareholding and wants additional suitable investors to provide the majority of Jet Airways' required recapitalisation.
People in the know told Mint that the banks do not want to end up as the controlling shareholder, but will be comfortable with a stake of around 30-35% depending on the final equity infusion by other partners. "Meanwhile, NIIF, which has shown interest in investing in Jet, has indicated that it will not be willing to own more than 20% in a revived Jet Airways, with the overall value of its investment not exceeding Rs 1,400 crore," a source said.
To woo investors, the consortium is even willing to take a hit. The source said that lenders have agreed to take a significant haircut if the situation demands in the coming days, further adding that any new investor is expected to seek anywhere between 80% to 90% haircut from the banks.
28/05/19 Business Today
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