The decision on the debt-equity conversion will be taken by Jet Airways lenders once they get a binding offer from a potential buyer, multiple sources told CNBC-TV18.
With the Reserve Bank of India's Feb 12 circular being struck down by the Supreme Court, the debt-equity conversion became an issue. Also,
the lenders are hopeful that over the next 3 weeks, ahead of May 10th deadline, they will be able to address some of the concerns that potential buyers have expressed.
The big concern that potential buyers have is with respect to past liabilities. They want clarity on the kind of write-downs that will be taken by secured, unsecured creditors as well as operational creditors and obviously, it will be a no go if there isn’t enough assurance and comfort given on how much is likely to be written off.