India’s Jet Airways Ltd, after several attempts at finding help to save the carrier from a crippling pile of debt, last week approved a rescue deal which will make its lenders its largest shareholders and fix a near 85 billion rupee funding gap.
Jet, which had debt exceeding 80 billion rupees (USD 1.12 billion) as of September-end, has been steadily losing market share to its rival and low-cost carrier IndiGo, which is owned by InterGlobe Aviation Ltd.
The airline has also seen its share price suffer as it navigated through several negotiations with its lenders and shareholders.
For an interactive graphic on the airline’s market value
Jet will take the resolution plan to its shareholders later in the day where it will seek their approval to convert debt into 114 million shares.
