JET board approves Banks` resolution plan |
Jet Airways is expected to fly out of its troubles soon as the board of Jet Airways has approved a proposal, allowing a consortium of banks led by State Bank of India to take hold of majority shares which will also result in founder promoter Naresh Goyal to lose control of the airline. Goyal`s stake is said to be reduced to 20% from the existing 51%. The banks will convert some portion of their debt to equity which will make them a largest shareholder. The Bank led resolution plan BLRP has been proposed which will help in meeting the gap of nearly 1.2 billion dollars which will be a mix of equity, debt restructuring, sale and refinancing. The criticality of the resolution has come to fore after Jet announced its fourth straight quarterly loss. The resolution needs to be passed by the shareholders` when they meet at the Jet Shareholders` meet on Feb 21. Several approvals including nods from the Securities and Exchange Board of India and the ministry of civil aviation are required for the restructuring plan to be rolled out.
|
|
|
|