On Monday, Jet Airways said it has sought approval of the shareholders for conversion of loan into shares or convertible instruments or other securities.
Cash-strapped carrier Jet Airways, which is struggling to remain afloat amid a financial crisis, Tuesday cancelled 19 fights after it grounded four of its Boeing 737 aircraft. The company sourced told The Indian Express that the cancellation of flights happened as the lessors are shortly to take back possession of these aircraft.
“One aircraft each has been grounded at Delhi, Mumbai, Chennai and Bengaluru airports due to which flights have been cancelled. Some of these 19 flights are even cancelled for tomorrow (Wednesday). However, a resolution is expected by end of this week,” a Jet Airways source told the newspaper on condition of anonymity.
The Naresh Goyal-promoted airline defaulted on payment of interest and principal instalment last month to a consortium of banks led by the SBI, after its plans to raise Rs 1,500 crore short-term debt to meet its working capital requirement failed to materialise on time. The senior management team of the airline met with the SBI officials as well as the aircraft lessors earlier this month to apprise to discuss revival plans.
The full-service carrier is reportedly holding a discussion with its partner Etihad for an additional cash infusion. It said in a BSE filing on Monday that it has sought approval of the shareholders for conversion of loan into shares or convertible instruments or other securities, indicating that banks are likely to convert part of the debt into equity.
This could be to facilitate the conversion of debt into equity by lenders as part of the restructuring plan. Jet Airways proposed that its share capital is increased to Rs 2,200 crore. Jet Airways would be holding a meeting of the shareholders on February 21.
Jet Airways has a fleet of 123 aircraft, which includes 86 Boeing 737s – with several variants like 737 MAX 8, 737-700, 737-800, 737-900 and 737-900ER. Other aircraft operated by the airline include Boeing 777, ATR 72 and Airbus A330.