25 February 2019: Etihad Airways is learnt to have abstained from voting on several resolutions to convert Jet Airways’ debt into equity in the EGM the Naresh Goyal-led airline held last Thursday. Etihad has laid down stiff conditions for backing the resolution, a move that could delay the deal to bail out Jet. A delay in resolution will further squeeze Jet Airways, which is negotiating interim funding from banks.
On February 21, the airline’s shareholders approved five enabling resolutions to convert its debt into equity, appoint lenders’ nominees on the board, and increase the authorised share capital of the company.
The resolutions were passed by 97-99 per cent of the shareholders, but Etihad, which owns 24 per cent in the airline, abstained from voting, sources said.
The Gulf carrier has been pitching for SBI and the NIIF to own 51 per cent and invest Rs 2,200 crore in the airline, said sources.
Etihad has sought the right of first refusal (RoFR) after one year and wants SBI to get a confirmation from the Securities and Exchange Board of India (Sebi) that the right, if exercised, will not trigger a mandatory open offer, said sources in the know.
Under Sebi norms, entities have to make an open offer to shareholders in case their shareholding goes beyond a threshold.
“Etihad’s board is yet to approve the resolution plan and perhaps that is why they abstained from voting,” said an airline source.
However, lender sources said they would be meeting shortly — for converting part debt into equity and other elements of the resolution plan.
Categories: General News