A final resolution to Jet Airways’ revival plan is likely within a week, a top SBI official on Friday said
Jet Airways revival plan: A final resolution to Jet Airways’ revival plan is likely within a week, a top SBI official on Friday said, adding, “efforts are on, any resolution plan is a very complex process but broad contours are there”. The official said rescue plans are not a one- or two-day process as alignment of various stakeholders is required. “There are vendors, promoters and joint venture partners and there are complexities in all corporate accounts, not just Jet,” he added.
The comments by the SBI official assumes significance because it comes barely days after the Etihad board put on hold Jet’s plea on extending an interim funding of Rs 750 crore ahead of regulatory approvals to the bank-led resolution plan from the civil aviation ministry, Securities and Exchange Board of India, Competition Commission of India, and the the overseeing committee of the Indian Banks’ Association.
This was seen as a setback for the ailing carrier as banks will release a matching amount only once Etihad releases its part of the interim funds.
As is known, on February 14, Jet’s board had approved a debt recast plan whereby the lenders would become the largest shareholders in the airline by converting the debt into equity at a nominal price of Re 1. The same was approved by the shareholders on February 21.
Accordingly, a draft memorandum of understanding has been prepared by Jet Airways which has detailed the revival plan relating to fund infusion by the stakeholders. It is this MoU which the Etihad board has not cleared, thus putting a question mark over timely revival of the airline.