Jet Airways likely to get over Rs 3,000 crore funds

Jet Airways likely to get over Rs 3,000 crore funds
By Nagaland Post | Publish Date: 2/17/2019 1:29:09 PM IST

 Loss-making Jet Airways is likely to receive fund infusion worth over Rs 3,000 crore post debt-rejig and investments by Etihad Airways as well as National Investment and Infrastructure Fund (NIIF) while founder Naresh Goyal might remain the promoter with less than half of the existing majority stake of 51 per cent, according to sources.

hile the final contours of debt-restructuring and consequent changes are being worked out, an analyst said that Etihad Airways should come as the main driver for Jet Airways as lenders and shareholders would not be able to bring in much value addition.
Abu Dhabi-based Etihad, which currently owns 24 percent in the full service carrier, is a strategic partner and is expected to pump in around Rs 1,400 crore, sources said.
On February 14, Jet Airways’ board approved a Bank-Led Provisional Resolution Plan (BLPRP), whereby lenders would become the largest shareholders in the airline.
After receiving approval from shareholders, during their meeting scheduled for February 21, part of debt would be converted into 11.4 crore shares at a consideration of Re 1 apiece as per RBI norms.
Later, appropriate interim credit facilities by domestic lenders would be sanctioned to the airline, as per a regulatory filing made on February 14. The government-backed NIIF, where Abu Dhabi Investment Authority is a key stakeholder, is likely to acquire little over 19 percent stake in the ailing airline, they added.
They said that NIIF is likely to put in Rs 1,400 crore while lenders, led by the State Bank of India (SBI), are expected to convert debt into equity worth around Rs 600 crore.
Sources also said that Etihad’s proposed investments would hike its stake only marginally and that would not trigger the requirement for making an open offer for shareholders of Jet Airways under Sebi regulations.
Together, the fresh funding for the airline would amount to about Rs 3,400 crore and Goyal’s stake could reduce to 20 percent from 51 percent at present, sources said.
Queries sent to Etihad Airways and NIIF on their proposed investments in Jet Airways remained unanswered.
Query sent to Jet Airways about Goyal’s stake coming down to around 20 percent after debt-rejig did not elicit any immediate response. 
In the three months ended December 2018, Jet Airways reported a consolidated net loss of Rs 732 crore.

Launched on December 3,1990. Nagaland Post is the first and highest circulated newspaper of Nagaland state. Nagaland Post is also the first newspaper in Nagaland to be published in multi-colour.

Desk:+91-3862-248 489, e-mail: Fax: +91-3862-248 500
Advt.:+91-3862-248 267,



Join us on

© Nagaland Post 2018. All Rights are Reserved
Designed by : 4C Plus