INSUBCONTINENT EXCLUSIVE:
A consortium of banks, along with the National Investment and Infrastructure Fund (NIIF) and Etihad, will invest about Rs 3,400 crore in Jet
Airways, leading to a much-reduced holding for founder Naresh Goyal, a change in management control and lenders with the biggest stake
Following the infusion, which will be in phases, the consortium of banks, led by State Bank of India, will own 32% of the airline and Abu
will drop to 20% from 51%, stripping him of board membership and management control, the person said
increase beyond 25% even after the equity infusion
The banks will get their stake in the company at Rs 1 per share.
EGM on February 21Jet Airways ended at Rs 232.55 on the BSE Friday, up 3%
promoter after the change in ownership structure
person cited above pointed out that the Abu Dhabi Investment Authority (ADIA) has contributed a big chunk of the NIIF, which is anchored by
Etihad has reportedly told the banks that it wants Goyal out of the board and that its share of infusion be converted into shares at Rs 150
As part of the deal, about Rs 6,000 crore of what it owes will be converted into long-term debt by the banks to be repaid over a period of
A substantial part of the infusion will be used to repay debt and meet other operational costs including salaries.
The Jet Airways board
approved the deal in its meeting on Thursday and the airline has called an extraordinary general meeting (EGM) on February 21 to seek
It made a loss of Rs 732 crore in the October-December period, its fourth straight quarterly loss, the airline said Thursday.
Jet Airways,
which is going through its worst financial crisis, has defaulted on loan repayments for December and has delayed employee salaries for
several months, which was flagged off as safety risk in a Directorate General of Civil Aviation (DGCA) audit
The airline has also reportedly deferred deliveries of Boeing 737 MAX planes that were supposed to join its fleet by March this year
Jet Airways has placed an order for 225 Boeing planes
It has received five of them till date and had aimed to induct six more by March.
