Print Edition - 2019-02-02 | MONEY
Jet has agreed to Etihad’s bailout terms: Report
-, NEW DELHI
Feb 2, 2019-
Jet Airways Ltd has agreed to most conditions set by shareholder Etihad Airways for offering a lifeline to the debt-laden Indian carrier, the Business Standard newspaper said, sending Jet’s shares soaring as much as 18 percent on Friday.Both airlines are set to sign a memorandum of understanding (MoU) within days, which would result in Jet Airways’ founder and chairman Naresh Goyal reducing his stake to 22 percent from 51 percent and stepping down from the board, the report said, citing sources.
Etihad’s stake would go up to 40 percent from 24 percent and the lenders would convert some of their debt to equity, giving them about 30 percent ownership of the cash-strapped carrier, the newspaper reported.
Jet Airways said in a statement to the stock exchange that, as previously stated, the airline is working on a comprehensive resolution plan with lenders, lead by State Bank
of India (SBI), and other stakeholders. Etihad declined to comment. Saddled with debt of about $1.14 billion, Jet Airways has been hit by fierce competition, rupee depreciation and high oil prices.
Published: 02-02-2019 13:11