Jet Airways seeks shareholder approval for debt to equity swap

Jet Airways said Monday it would seek shareholder approval next month to convert existing debt into equity, part of efforts by the cash-strapped airline to resolve its financing problems. Jet Airways, saddled with debts of about US$1.14b, has been hit by fierce competition, rupee depreciation and high oil prices. The company owes money to banks, pilots, vendors and lessors - some of whom are considering taking back aircraft, sources have said. The airline will seek a green light from shareholders to convert part or all of its loans into equity at a special meeting Feb 21, subject to regulatory approval. It will also seek permission to convert future loans into equity, the airline said. Jet will also seek approval to issue new equity and allow its lenders to nominate directors to its board, it said. <br/>