New Delhi|Mumbai: Lenders to Jet AirwaysNSE -0.15 % are proposing a new plan that will fund the stricken airline through a rights issue with existing promoters and partners renouncing a portion of their stake in favour of new investors.
Under the proposal, which is being discussed internally, the airline will raise Rs 5,135 crore through equity infusion by two new investors. The National Investment and Infrastructure Fund (NIIF) is likely to be one of them. Existing equity holders like ..
The banks are also proposing that the remaining shareholding (after renunciation possibly) of Goyal and Etihad be transferred to a trust managed by lenders with a call option on shares owned by the trust. The resolution plan proposed by the lenders is being discussed and ET has seen a copy of it.
Emails sent to SBI and Jet Airways did not elicit any response till the time of going to print.
Etihad, which is expected to renounce its rights, decided on Sunday that it is no longer interested in increasing its stake in the beleaguered airline. “As always, Etihad continues to work closely with lenders, management and key stakeholders to facilitate a solution for Jet,” said a spokesperson at Etihad.
Jet’s lenders had given Etihad until March 31to exercise a right of first ref ..
Call option
“The trust can exercise the call option at Rs 150/share plus 8 per cent per annum carry. Trust will pass the proceeds received from the sale of shares or exercise of the call option to Goyal and Etihad,” reads the draft resolution plan.
Jet Airways, which is going through its worst financial crisis and was on the verge of a closure, was taken over by banks that now own 50.1 per cent in the airline, at a token amount of Rs 1. The banks have also exte ..
Under the proposal, which is being discussed internally, the airline will raise Rs 5,135 crore through equity infusion by two new investors. The National Investment and Infrastructure Fund (NIIF) is likely to be one of them. Existing equity holders like ..
The banks are also proposing that the remaining shareholding (after renunciation possibly) of Goyal and Etihad be transferred to a trust managed by lenders with a call option on shares owned by the trust. The resolution plan proposed by the lenders is being discussed and ET has seen a copy of it.
Emails sent to SBI and Jet Airways did not elicit any response till the time of going to print.
Etihad, which is expected to renounce its rights, decided on Sunday that it is no longer interested in increasing its stake in the beleaguered airline. “As always, Etihad continues to work closely with lenders, management and key stakeholders to facilitate a solution for Jet,” said a spokesperson at Etihad.
Jet’s lenders had given Etihad until March 31to exercise a right of first ref ..
Call option
“The trust can exercise the call option at Rs 150/share plus 8 per cent per annum carry. Trust will pass the proceeds received from the sale of shares or exercise of the call option to Goyal and Etihad,” reads the draft resolution plan.
Jet Airways, which is going through its worst financial crisis and was on the verge of a closure, was taken over by banks that now own 50.1 per cent in the airline, at a token amount of Rs 1. The banks have also exte ..
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