Banks come up with rescue package for Jet

After months of negotiations, lenders led by State Bank of India are set to take control of debt-laden Jet Airways, with the company board on Thursday approving a bank-led provisional resolution plan.

Under this plan, the SBI-led lenders will convert the debt into 11.4 crore shares for just Rs. 1. With that, the lenders will become the largest shareholders in the company, with a stake of about 50 per cent.

This comes even as Jet Airways on Thursday posted a loss of Rs. 587.77 crore for the quarter ended December 31, against a profit of Rs. 165.25 crore in the corresponding quarter of the previous year. Revenue stood at Rs. 6,147.98 crore ( Rs. 6,086.20 crore).

Higher costs due to the price of Brent crude (up 29 per cent YoY) and the depreciated rupee impacted the airline’s business performance.