Jet Airways: SBI is working on resolution plan, stock up

Jet Airways Limited has informed that the consortium of lenders, led by the State Bank of India (SBI), is working on a comprehensive resolution plan for a turnaround of the airline. Changes to the composition of the company's board are also being discussed.

Jet Airways' has delayed the payment of interest and principal instalment to the banks, following which SBI along with other banks and stakeholders has been working on a comprehensive resolution plan towards a turnaround of the company for sustained growth and restoration of financial health.

In a statement to the exchanges, Jet Airways' said that the resolution plan contemplated various options on the debt-equity mix, proportion of equity infusion by various stakeholders and the consequent change in the composition of the company’s board of directors.

On the other hand, the media was buzzing that Etihad Airways may increase its stake in Jet Airways under a scheme wherein it will hold 49 per cent directly and bring in a ‘sleeping partner’ to obtain larger control of the debt-ridden airline. The scheme valued Jet Airway at a discount of Rs. 150 per share and came with a rider that Naresh Goyal and family exit from the airline. Whereas Naresh Goyal is said to have put forth a deal wherein he is ready to infuse up to Rs. 700 crore in the company on the condition that his stake should not fall below 25 per cent.

On Thursday, the stock of Jet Airways opened at Rs. 263 per share and touched a high/low of 267.85/256.40 per share. At 15.06 hours, the stock was quoting Rs. 286.20 per share, up by 5.61 per cent on BSE.