Jet Airways’ board on Thursday approved a debt resolution plan that mainly includes infusion of funds, restructuring of debt and monetisation of assets. The lenders-led by State Bank of India (SBI) would become the largest shareholders post the debt recast, according to the plan.
“Board of Directors, in its meeting held today, inter-alia, considered and approved a BLPRP, received from the State Bank of India CSBI”), appointed as lead lender by consortium of domestic lenders (“Lenders”),” Jet Airways said in the exchange filing.
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After receiving approval from shareholders at their meeting to be held on February 21, Bank led Provisional Resolution Plan (BLPRP) proposes to convert lenders debt into 11.40 crore shares of Rs 10 each, which will result in lenders becoming largest shareholders of Jet Airways.
The BLPRP currently estimates a 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 infusion, debt restructuring, sale/ sale and lease back/refinancing of aircraft, among other things.”
Jet Airways also said that the implementation of final bank-led resolution plan to take place under a monitoring agency.
Meanwhile, Jet Airways today posted a loss of Rs 587.77 crore for the quarter ended December against profit of Rs 165.25 crore in the corresponding period last year. The revenue of the firm stood at Rs 6,147.98 crore in Q3FY19 over Rs 6,086.20 crore in Q3FY18.
Total expenses in the third quarter shot up to Rs 6,786.15 crore as compared to Rs 6,042.58 crore in the same quarter last fiscal, it added. Aircraft fuel expenses stood at Rs 2,387.72 crore as compared to Rs 1,840.08 crore in the corresponding period last year, while aircraft and engines lease rentals were at Rs 730.35 crore as against Rs 583.67 crore.