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Lenders may pick substantial stake in Jet, wait for new promoters: Report

The process of getting a new promoter on board is likely to take another two to three months and once that happens, the banks would offload their stakes

Press Trust of India  |  New Delhi 

Naresh Goyal to shed stake to 17% in Jet bailout plan; lenders to hold 30%

Lenders of are likely to pick up a substantial stake in the till a new promoter is roped in, sources said.

The process of getting a new promoter on board is likely to take another two to three months and once that happens, the banks would offload their stakes, they added.

The State Bank of India-led consortium of lenders is working on a resolution plan for the cash-strapped for the last five months. The full-has a debt burden of more than Rs 8,200 crore and needs to make repayments worth up to Rs 1,700 crore by March-end.

Sources said lenders of might pick up a substantial stake in the airline, a move that would provide comfort in the interim period till new promoters come in.

Current promoters of Jet Airways have to exit before a new investor can be roped in. The entry of new promoter is unlikely before two to three months, one of the sources said.

The lenders would ultimately sell their stake in Jet Airways to the new promoters as and when they are roped in, they added.

Jet Airways holds 51 per cent stake while Gulf carrier has 24 per cent shareholding in the airline, which has been in operation for over 25 years.

Earlier this week, SBI along with Secretary and Principal Secretary to Prime Minister apprised about the developments at Jet Airways. is flying just about a third of its fleet, defaulting on interest payments and delaying salaries to pilots.

The lenders are trying to revive the carrier by change in management as they feel collapse of would not be good for consumers as well as competition in the industry. They have also decided against taking through insolvency process.

On Tuesday, Jet Airways' pilots' union threatened to stop flying from April 1 if their salaries were not paid by March 31.

Earlier this week, the of Civil (DGCA) said there may be "further attrition" of flights "in coming weeks".

First Published: Fri, March 22 2019. 20:30 IST
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