Jet Airways board approves provisional resolution plan

    Jet Airways announced (14-Feb-2019) its board approved a provisional resolution plan proposed by a consortium of lenders led by the State Bank of India. The plan includes provisions permitting the lenders to convert a significant portion of the airline’s debt into equity by purchasing shares in Jet Airways and, if implemented, will result in the lenders becoming the largest shareholders in the airline. The lenders will also be permitted to nominate directors for the airline’s board. The plan is aimed at resolving an approximately INR85 billion (USD1.2 billion) funding gap for Jet Airways and also includes provisions for equity infusion and “sale/sale and lease back/refinancing of aircraft”.