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Indian banks propose $900 million turnaround plan for Jet Airways: Mint


(Reuters) - Debt-laden Jet Airways Ltd's lenders proposed a $900 million resolution plan, daily reported on Wednesday, citing sources familiar with the matter.

The financial woes of Jet, India's biggest full-service carrier by market share, worsened in 2018 amid rising and intense pricing competition in the Indian skies.

The resolution plan was shared with the airline's lessors and vendors at a meeting chaired by and attended by the airline's senior management, including and a of Etihad Airways PJSC, the report added.

Goyal and Etihad are likely to infuse $450 million together in Jet, while Indian lenders will restructure another $450 million of its debt, Mint quoted sources as saying.

If the plan is approved by all stakeholders, it will result in Naresh Goyal's stake falling below the current 51 percent, the report added.

The airline, part owned by Etihad Airways, was in talks with the Abu Dhabi-based carrier to infuse more equity, but any money would be conditional on Jet's founder ceding control, sources have told

Last week, Jet said it had defaulted on debt payment to a consortium of Indian banks, prompting ratings agency to downgrade the carrier.

Jet Airways and SBI did not immediately respond to Reuters' request for comment.

(Reporting by in Bengaluru, Editing by Sherry Jacob-Phillips)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Wed, January 09 2019. 10:30 IST