1 April 2019: In a bid to revive cash-strapped Jet Airways, public sector lender State Bank of India (SBI) has proposed a new plan which involves a fund infusion of Rs 9,535 crore, and exit of founder Naresh Goyal and Etihad Airways, Mint reported.
The bank is planning an equity infusion of Rs 3,800 crore by two investors, that remain unidentified, and Rs 850 crore equity infusion by public sector banks led by SBI, Rs 485 crore on behalf of public shareholders and additional debt of Rs 2,400 crore and non-fund based facilities of Rs 2,000 crore, the report said quoting sources.
The plan, according to the report said, also pushes for a complete exit of Etihad, large haircuts for banks which include a write-off of debt by the domestic lenders to the ailing airline.
The new plan pushes for both Goyal and Etihad to transfer their shares, 51 percent and 24 percent stakes, respectively, in the airline to an independent trust managed by trustees, who will be appointed by the lenders.
The trustees will reportedly have a call option on the shares owned by the trust at Rs 150 apiece. The resolution plan is subject to approval by various stakeholders, the daily said.