Debt-laden Jet Airways may be set to receive some monetary help to stay afloat. The State Bank of India (SBI) is set to swap part of its loans into a stake of at least 15 per cent in Jet Airways as lenders to the carrier plan similar conversions of some debt into equity to help keep the carrier alive. In a new rescue deal into the works for India's biggest full-service airline, founder chairman Naresh Goyal's stake will fall below 20 per cent from 51 per cent currently. Foreign partner Etihad Airways with its 24 per cent stake, is expected to infuse additional funds to take its holding to more than 40 per cent.
The Mumbai-based carrier, which has struggled with profitability in an increasingly competitive market, has piled on $1.1 billion in debt and fallen behind on paying loans and salaries. No final decision has been taken, the people said. Jet Airways has called an extraordinary general meeting on February 21 in Mumbai to seek shareholders' approval to increase its authorised share capital by issuing equity and preferred shares. The carrier is working on “various options on the debt equity mix, proportion of equity infusion,” the airline said in a statement on January 16.
