SBI set to own 15% of Jet Airways, Etihad 40%: Reports
Jet Airways creditor State Bank of India is likely to own 15% of the airline if the cash-strapped carrier's plan for a debt-for-equity swap is approved, Indian TV channels reported Tuesday. With debts of about US$1.14b, Jet has been hit by fierce competition from other low-cost carriers, a weaker rupee and high oil prices. It owes money to banks, pilots, vendors and lessors, some of whom are considering taking back aircraft, sources said. Jet said Monday it would seek shareholder approval next month to convert debt into equity, increase its share capital and allow lenders to nominate a director on its board to help resolve its financial problems. Its lenders, including SBI, could end up owning as much as 30%, while Etihad Airways could see its stake rise to more than 40% from 24% if it injects more equity in the carrier. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-01-30/eap/sbi-set-to-own-15-of-jet-airways-etihad-40-reports
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SBI set to own 15% of Jet Airways, Etihad 40%: Reports
Jet Airways creditor State Bank of India is likely to own 15% of the airline if the cash-strapped carrier's plan for a debt-for-equity swap is approved, Indian TV channels reported Tuesday. With debts of about US$1.14b, Jet has been hit by fierce competition from other low-cost carriers, a weaker rupee and high oil prices. It owes money to banks, pilots, vendors and lessors, some of whom are considering taking back aircraft, sources said. Jet said Monday it would seek shareholder approval next month to convert debt into equity, increase its share capital and allow lenders to nominate a director on its board to help resolve its financial problems. Its lenders, including SBI, could end up owning as much as 30%, while Etihad Airways could see its stake rise to more than 40% from 24% if it injects more equity in the carrier. <br/>
