Late last week, Rajnish Kumar, Chairman of the State Bank of India, made a meeting with Indian government officials on the wind-up plan for Jet Airways (India) Ltd. he struck out confidently.
"We believe it is so In the interest of all, Jet Airways continues to fly," Kumar told reporters, affirming that bankruptcy was the last resort. "We will do everything possible to keep Jet Airways running."
Behind this self-confident appearance, Kumar probably knows that putting together a solution plan for Jet Airways is an increasingly complex task.
Until a week ago had a bank The project for the handling of aircraft entrusted with the Jet Airways partner Etihad Airways PJSC remained on the discussion table. Since then, Etihad has signaled that he would rather end the partnership than increase his investment in Jet. As there was no resolution plan and no bridging financing, Jet had at least 47 aircraft grounded for non-payment. Behind the scenes is working a government that wants to avoid the collapse of an airline with more than 20,000 employees.
It seems that state-owned banks are holding their bags. Jet Airways has a debt of nearly 1
What will the lenders do?
A meeting of lenders on Friday to discuss the next steps was not conclusive. The talks are likely to continue at a meeting on Monday.
One of the immediate decisions banks face is whether they can find a buyer for Etihad's 24-percent stake. If not, should lenders buy Jets Partner Investor?
While informing SBI of its decision not to participate in the Jet Airways restructuring plan last week, Etihad offered to sell its stake at a price of Rs 150 per share. With no new buyers on the horizon, the consortium of lenders will question the purchase of Etihad Airways' shares, said a person close to development, and commented on the condition of anonymity. This 24 percent stake will exceed the 11.4 crore shares that Jet Airways intends to allocate to the lender consortium as part of its debt to equity transformation.
Naresh Goyal, chairman and promoter of Jet Airways, has already agreed to step down from his position, although he could ultimately retain part of his stake in the company.
Together, the credit consortium will take control of Jet Airways.