INSUBCONTINENT EXCLUSIVE:
MUMBAI/KOLKATA: State Bank of India has appointed advisory firm EY to conduct a forensic audit of the books of Jet Airways, the financially
Kingfisher sank in 2012 with more than ?8,000 crore of unpaid bank loans and other dues
SBI was the lead banker to the airline.
SBI is also the top local lender to Jet, which has debt of more than ?8,000 crore on its books.
Jet
recent past to tide over the working capital crisis
There was also a regulatory review of its accounts
On a review of the financials, it appears that Jet needs to focus on passenger load factors, achieving better on time performance and
optimising revenue per passenger mile
Bankers, before sanctioning further credit, may carry out a forensic review or a diagnostic exercise as a matter of abundant caution to
staff, grounded planes and trimmed operations
It has been the subject of multiple credit rating downgrades and is now seeking a cash handout, most actively from its partner Etihad
Airways, by selling more stake to the Abu Dhabi-based airline
Etihad owns 24% in Jet.
Jet had proposed Etihad infuse more equity into the airline and hold 34% of the expanded equity base
