homeaviation NewsResolution plan is presently under active discussion amongst the stakeholders, says Jet Airways
Resolution plan is presently under active discussion amongst the stakeholders, says Jet Airways
Debt-laden Jet Airways on Wednesday said State Bank of India (SBI) along with other lenders and stakeholders is working on a comprehensive resolution plan to turnaround the airline. "The resolution plan is presently under active discussion amongst the stakeholders and the various options are yet to be crystallised and agreed to by the stakeholders in the best interests of the company," Jet Airways said in a statement.
Debt-laden Jet Airways on Wednesday said State Bank of India (SBI) along with other lenders and stakeholders is working on a comprehensive resolution plan to turnaround the airline.
"The resolution plan is presently under active discussion amongst the stakeholders and the various options are yet to be crystallised and agreed to by the stakeholders in the best interests of the company," Jet Airways said in a statement.
While a SBI spokesperson said, "Lenders are considering a restructuring plan under RBI framework for resolution of Jet Airways. Any such plan will be subject to approval of boards of all lenders and RBI, SEBI ICDR and Ministry of Civil Aviation codes."
The said resolution plan, inter alia, contemplates various options on the debt-equity mix, proportion of equity infusion by the various stakeholders and the consequent change in the composition of the company’s board of directors, the airline added.
"The company is committed to be in compliance with the applicable laws and will, at the appropriate time, make necessary disclosures and statements in order to ensure transparency and avoid speculations and rumours in respect of the subject matter," Jet Airways said.
The company's response came after stock exchanges sought clarification from Jet Airways, with reference to media reports suggesting an offer from Etihad Airways.
Etihad Group CEO Tony Douglas, in an email toSBI on Wednesday said his airline will invest in struggling Jet Airways only at Rs 150 per share.
Etihad, in the letter to SBI, said debt extended to founder and chairman Naresh Goyal and related parties should not be converted to equity and bankers must insist on a moratorium on this debt. Etihad CEO insisted that Goyal must step down from the board with stake restricted to 22 percent from the current 51 percent.
Etihad Airways currently holds 24 percent stake in the troubled airline.
On January 14, CNBC-TV18 reported Goyal is likely to step down this week and lenders meet to finalise resolution plan for the airline.
First Published: Jan 16, 2019 3:51 PM IST
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