Soft on promoters, still

Jet bailout should not allow equity holders too much leeway

Jet Airways is selling a majority stake to its lenders for Rs 1, under a complicated arrangement that is on track to be put on vote on February 21.  A group of lenders led by State Bank of India has proposed taking a 50.1 per cent stake in India’s largest full-service carrier through the issuance of 114 million new shares — something that is allowed under a framework outlined by the Reserve Bank of India last year. The procedure, applicable for companies with a negative net worth, is called bank-led provisional resolution plan, and needs to be approved by all