SBI Likely To Own 15% Of Jet Airways After Debt Conversion
State Bank of India is set to take an equity stake of at least 15 percent in Jet Airways India Ltd. as lenders to the carrier plans to convert part of their loans into equity, people with knowledge of the matter told Bloomberg News.
On Monday, the struggling airline had sought shareholder approval through a special resolution to increase its authorised share capital to Rs 2,200 crore from Rs 200 crore, according to its stock exchange filing. The move will pave the way for the airline to issue fresh shares to lenders.
Jet Airways defaulted on bank payments due on Dec. 31 amid a cash crunch. The Naresh Goyal-led airline, which has a debt of over Rs 10,900 crore, must repay nearly Rs 1,700 crore by the end of the current fiscal.
This is a developing story.