The lenders to Jet Airways recently opened the stake acquisition offer by Etihad Airways, only to find a letter of interest instead of the speculated binding bid. To top it off, the Abu Dhabi-based airline posed some stringent prerequisites to help with the revival of the embattled Indian carrier.
Among its demands, Etihad has called for substantial write down of Jet Airways' Rs 9,000-crore debt, a report by the Business Standard said. Although it has not spelled out the extent of the haircut Jet's lenders should take, the amount could be substantial.
As the Jet Airways account is set to become a non-performing asset, several banks have already made provision for bad loan in the March quarter of FY19. This list includes the lead lender, State Bank of India, ICICI Bank, Canara Bank, Syndicate Bank and Yes bank. Other lenders are expected to do the same, the report added.
Moreover, Etihad has assigned the responsibility of finding a majority investor to run Jet Airways to its lenders. The Arab aviation major had clarified last week that it would not be the sole investor in the debt-ridden airline.
Etihad already has got one of its wishes, with Jet founder Naresh Goyal and his nominees no longer a part of the company's board.
14/05/19 BusinessToday
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Among its demands, Etihad has called for substantial write down of Jet Airways' Rs 9,000-crore debt, a report by the Business Standard said. Although it has not spelled out the extent of the haircut Jet's lenders should take, the amount could be substantial.
As the Jet Airways account is set to become a non-performing asset, several banks have already made provision for bad loan in the March quarter of FY19. This list includes the lead lender, State Bank of India, ICICI Bank, Canara Bank, Syndicate Bank and Yes bank. Other lenders are expected to do the same, the report added.
Moreover, Etihad has assigned the responsibility of finding a majority investor to run Jet Airways to its lenders. The Arab aviation major had clarified last week that it would not be the sole investor in the debt-ridden airline.
Etihad already has got one of its wishes, with Jet founder Naresh Goyal and his nominees no longer a part of the company's board.
14/05/19 BusinessToday
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