Loan Restructuring plan for Jat Airways |
The aviation sector keenly watched development in the Jet Airways which will require banks to provide for part of their $1.15 billion exposure to the airline in their Q4 results. State Bank of India (SBI) on Thursday said that lenders are considering a restructuring plan — an acknowledgement that the loan is not viable in the present form, media reports said. RBI norms require lenders to make at least 15% provisions on their exposure once a loan is restructured. The actual hit could be higher, considering that both promoter Naresh Goyal and Etihad, which holds 24% in the ailing carrier, are unwilling to bring in funds without relief in repayment. Jet Airways Chairman Naresh Goyal has offered to invest up to $98 million in the crisis-hit airline as well as pledge all his shares on the condition that his stake does not fall below 25 per cent, according to a letter. Etihad Airways, on the other hand, allegedly wants Goyal to step down and is ready to pump in 35 million dollars into Jet as soon as Goyal does so. Share prices of Jet fell by 3.3 percent on Friday to Rs. 276.
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