MUMBAI: Private carrier Jet Airways, struggling to find a way out of its huge debt, on Thursday said its board has approved a bank-led debt resolution proposal, which would see lenders becoming the largest shareholders in the company. The company had already called for shareholders’ meeting on February 21, to seek approval for conversion of debt to equity and increase in equity base.
Allotment of shares to the banks/lenders would be done at a consideration of Rs 1, and banks’ appointment of nominees on the board of Jet Airways would be done as per the Reserve Bank of India, it said in a press release. “Such allotment/ conversion of Lenders’ debt to equity shares of the Company will be made at an aggregate consideration of INR 1, in accordance with the RBI Circular, whereby Lenders can convert debt to equity at INR 1, when the book value per share of a company is negative,” the airline said.
