Jet Airways could buy a Rs 750cr lifeline with promoters’ money

MUMBAI: Jet AirwaysNSE 2.90 % could get emergency funding if the promoters agree to bring in Rs 750 crore. Lenders have approved a plan to convert part of their debt into equity with a 49% stake in the airline. SBINSE 2.17 % and PNBNSE 1.73 % will bring in Rs 500 crore as an emergency infusion, subject to other lenders agreeing to the two banks being allowed to take out their money first.

According to sources, lenders do not want to be majority shareholders in Jet Airways. They have therefore agreed to a debt conversion and to hold equity up to 49% of the airline. Lenders other than SBI and PNB will bring in an additional Rs 1,000 crore as part of this plan. This is subject to the airline promoters (Naresh Goyal and Etihad Airlines) bringing in Rs 750 crore promoter contribution.