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This article is more than 2 year old.

Top lenders of Jet Airways may buy other banks' exposure in airline, says report

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Cash-strapped Jet Airways' top lenders are likely to buy out the exposure of other smaller lenders, as they are not keen to participate in the debt-equity restructuring process, Business Standard reported.

Top lenders of Jet Airways may buy other banks' exposure in airline, says report
Cash-strapped Jet Airways' top lenders, including State Bank of India and Punjab National Bank, are likely to buy out the exposure of other smaller lenders, as they are not keen to participate in the debt-equity restructuring process, Business Standard reported.
Three lenders and one foreign lender are unwilling to participate in the resolution process of Jet, the report said citing sources.
The newspaper also said the size of the rights issue may be increased from the proposed Rs 2,500 crore to around Rs 4,000 crore.
According to a report by Mint, Jet has pledged its fixed deposits (FDs) of Rs 1,500 crore with lenders so that it can borrow Rs 225 crore from the State Bank of India (SBI), giving the airline to borrow more from SBI with the same FDs as security.
Sources told Mint that the decision of borrowing against FDs will help the airline earn higher interest than what Jet has to pay to SBI.
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