‘Need Rs 9,535 Cr to Sustain’: Jet Airways’ Lenders Draw up New Resolution Plan to Keep Airline Afloat

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New Delhi: Lenders to cash-starved Jet Airways have chalked out a new resolution plan to keep the operations of the airline afloat.

The latest resolution plan says that the Jet requires a whopping amount of Rs 9,535 crore to sustain its operations, Moneycontrol reported. The report said that there will be an equity infusion of Rs 3,800 crore by two investors that may include the National Investment and Infrastructure Fund (NIIF). Besides, banks will shell out an additional Rs 850 crore while Rs 485 crore will be on behalf of public shareholders. Further, the resolution plan also included an additional debt of Rs 2,400 crore and non-fund based facilities of Rs 2,000 crore.

Besides ensuring the exit of Naresh Goyal and Etihad, the fresh resolution plan also implies huge haircuts for banks that are saving the airline. In order to ensure a smooth transition of ownership, an independent trust will be formed to transfer the shareholding of Goyal and Etihad. The trustees will be appointed by the lenders and they will have a call option on the shares owned by the trust at Rs 150 apiece. The interim management committee will likely be chaired by former SBI chief AK Purwar.

Jet Airways has been defaulting on salary payments to pilots, engineers and senior management since August last year.