ET Intelligence Group: Jet Airways’ debt restructuring plan merely addresses the immediate concern of averting a potential default on its payments. Given the lack of adequate details about how the airline would address serious long-term concerns of survival, there is very little for investors as of now to turn upbeat on its future.
Post restructuring the market would look at the implied value per share at which the banks converted the airline’s debt into equity. This will be a key determinant in the way the stock reacts on Friday. Post restructuring, the airline’s enterprise value would remain unchanged but the composition of equity and debt would change.
