Jet Airways gets board approval for draft debt resolution plan. Under the plan lenders will get majority stake by converting part debt to equity
11.4 crore shares of Rs 10 each will be allotted to lenders led by SBI at an aggregate price of Rs 1.
After restructuring lenders will hold 51% stake in Jet, Naresh Goyal's stake will fall from 51% to 25.5% and Etihad Airways' stake will halve to 12 percent.
Jet Airways estimates it needs about rs 8,500 crore for debt repayments including a proposed repayment of aircraft debt of Rs 1,700 crore.
This will be met through fund infusion, debt restructuring, asset monetisation. Jet will also seek interim credit from domestic lenders on terms to be agreed.
The resolution plan also allows lenders to appoint nominees to the Jet board
Jet Airways shareholders will meet on Feb 21 to consider the bank led resolution plan.
The plan will be presented to Indian Banks' association's overseeing committee, lenders, Etihad board and promoter. Implementation of final resolution plan will take place under a monitoring agency