INSUBCONTINENT EXCLUSIVE:
Shares of Jet Airways rallied over 5 per cent in morning trade on Friday after the board approved bank-led resolution plan (BLRP), entailing
However, the airline reported a standalone net loss of Rs 587.77 crore for the quarter ended December 31
It had posted a net profit of Rs 165.25 crore in the same quarter last year
On a consolidated basis, Jet Airways posted a net loss of Rs 732 crore for the quarter, against a net profit of Rs 186 crore for the same
period last year.
The carrier said revenue from operations during the quarter under review stood at Rs 6,147.98 crore as against Rs 6,086.20
crore in the year-ago period.
Total expenditure of the company increased to Rs 6,786.15 crore in Q3FY19 over Rs 6,042.58 crore in
Q3FY18.
The provisional restructuring plan (BLPRP) has been carried out by lenders, led by State Bank of India, under the Reserve Bank of
India's February 12, 2018 circular.
The plan proposes restructuring, under the provisions of the Reserve Bank of India's February 12,
2018 circular, to meet a funding gap of nearly Rs 8,500 crore.
"The BLPRP contemplates conversion of lenders' debt into 11.40 crore shares
of Rs 10 each by allotment of such number of equity shares to the lenders that would result in the lenders becoming the largest shareholders
in the company," the airline said in a filing to exchanges.
It said the allotment of 11.40 crore shares will be made at an aggregate
consideration of Re 1 since under the RBI circular, lenders can convert debt into equity at Re 1 when the book value per share of a company
funding gap of Rs 8,500 crore (including proposed repayment of aircraft debt of Rs 1,700 crore) to be met by appropriate mix of equity
Resolution Plan got approval from the board
Post this plan, lenders will hold 50.1 per cent in the company with board seats
According to a report, Rs 8,500 crore is needed to funds the gap which will be done via equity fusion and debt restructuring
