Bidding for Jet Airways delayed, banks await RBI nod on debt conversion

SC order on RBI's Feb 12 circular hits stake sale plan

A lack of clarity on the impact of the Supreme Court order quashing the Reserve Bank of India’s  (RBI’s) February 12, 2018, circular has delayed the stake sale process of cash-starved Jet Airways. Sources aware of the development said banks were still awaiting approval from the RBI on the legality of debt-equity conversion at Rs 1. As a result, the process of bidding, which was scheduled to start on Saturday, could not take off.
 
“All legal approvals from the RBI need to be in place including examination of the issue of debt to equity conversion. Unless legal work is