A consortium of commercial banks led by State Bank of India (SBI) will acquire a majority stake in Jet Airways (India) Ltd. by converting part of their debt into equity for a consideration of Rs. 1 and advancing more capital to give the airline a lifeline to enable it to achieve a turnaround.
Jet Airways’ board, on Thursday, considered and approved a bank-led provisional resolution plan (BLPRP) that proposes restructuring under the provisions of the ‘RBI Circular’ to meet a funding gap of nearly Rs. 8,500 crore, including proposed repayment of aircraft debt of Rs. 1,700 crore.
