Etihad flexes muscle, says it will exit Jet if resolution plan not reworked

Etihad has flexed its muscle and told lenders of bankrupt Jet AirwaysNSE -3.29 % to rework the resolution plan for the bankrupt airline, failing which it will press to exit the joint venture. Sources tell ET Now that Etihad has communicated this to lenders, and added that it will not infuse emergency funds of Rs 750 crore till the resolution plan is acceptable to it. Etihad currently has a 24% stake in the airline.

This may leave the lenders with no choice but to invoke insolvency and take Jet to the NCLT.

Etihad did not respond to all the queries sent by ET Now but did send this statement as a response: “As a minority shareholder, Etihad is working closely with Indian lenders, the company and key stakeholders to facilitate a solution for Jet Airways.”