Lenders may bring out resolution plan for Jet Airways: SBI
What's the story
State Bank of India (SBI) today said lenders are considering a resolution plan for Jet Airways to ensure the long-term viability of the debt-laden company. The SBI statement comes a day after the crisis-hit airline said discussions were "progressing well" with stakeholders on a comprehensive resolution plan that also contemplates equity infusion and consequent changes in its board of directors. Here's more.
Steps
Restructuring plan for airline would need approval from lenders' boards
There are rising concerns over the financial health of Jet, whose shares have also taken a beating at stock exchanges. "We'd like to state that lenders are considering a restructuring plan under the RBI framework for resolution of stressed assets that would ensure a long-term viability of the company," SBI said, adding the restructuring plan for the airline would need approval from lenders' boards.
Approval
Plan requires approval from RBI, SEBI, Ministry of Civil Aviation
"Any such plan would be subject to approval of boards of the lenders and subject to adherence and clearance, if required, from the RBI and/or Sebi (takeover code, ICDR regulations), and Ministry of Civil Aviation and in compliance with all regulatory prescriptions," the statement said. Shares of the cash-strapped airline are trading 4.24% lower at Rs. 259.50 apiece on BSE.