INSUBCONTINENT EXCLUSIVE:
MUMBAI: Stressed carrier Jet Airways has asked its partner Etihad Airways to back loans worth $150 million (Rs 1,050 crore) that it plans to
made this proposal even as it undergoes a forensic investigation directed by its top local lender.
An Etihad spokesperson said the airline
Etihad currently owns 24% stake in Jet
little cash to pay salaries or plane lease rentals regularly, needs funds to stay afloat and keep its operations running
With talks on equity infusion making no headway yet, debt raising is the only immediate option, said the people cited above
and fundraising plans.
Backing loans raised by Jet would mean the creditors can turn to Etihad if its Indian partner fails to repay
consultant EY, directed by its main lender State Bank of India
Such an audit is typically ordered when there is suspicion of fund diversion
The government is probing Jet on alleged irregular transactions
Jet has made a proposal to State Bank of India to convert some of its loans to equity, said people in the know
lenders from investing in a company, no shareholder would allow this unless the borrower had defaulted or is on the verge of default
Or if there has been an equity infusion already
