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Jet Airways shareholders approve conversion of loan into shares

Press Trust of India  |  New Delhi 

Shareholders of have approved conversion of loan into shares and other proposals as the seeks to fly out of financial turbulence.

During the extraordinary general meeting (EGM) on Thursday, the shareholders also approved alterations to the company's Articles of Association and Memorandum of Association.

According to a filing to the stock exchanges on Friday, said shareholders have approved five proposals that were put up for voting at the EGM.

Nearly 98 per cent of shareholders gave their nod for "conversion of loan into shares or convertible instruments or other securities", a move that assumes significance amid the carrier looking to restructure debt as well as raise fresh funds.

Increase in the authorised share capital and consequent alteration to share capital clause of Memorandum of Association has been cleared.

Shareholders gave their nod for alterations of the Articles of Association of the Company, 'Object Clause' and 'Liability Clause' of Memorandum of Association of the company.

On Thursday, founder promoter and did not attend the EGM and the meeting was chaired by

During the meeting, which had lasted for around 40 minutes, told shareholders that the has been talking to various investors for capital infusion.

On February 14, Jet Airways' board approved a Bank-Led Provisional Resolution Plan (BLPRP), whereby lenders would become the largest shareholders in the

Following approval from the shareholders, part of debt would be converted into 11.4 crore shares at a consideration of Re 1 apiece as per the RBI norms.

Later, appropriate interim credit facilities by domestic lenders would be sanctioned to the airline, according to a regulatory filing made on February 14.

Shares of Jet Airways rose nearly 1 per cent to close at Rs 236.70 on the BSE.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, February 22 2019. 21:30 IST