Lenders to Jet Airways (India) Ltd may not inject fresh capital into the grounded airline and instead choose to convert unsustainable debt into equity, said two bankers with direct knowledge of the matter.
To be sure, the lenders haven’t yet received any formal request for additional funds from the new owners of Jet Airways but their pre-emptive move has put a question mark on the revival of the carrier that hasn’t flown since April last year.
“Jet Airways will require sizeable investments to be able to resume operations. Existing lenders are taking a haircut and moving out of the company. Depending on the viability study proposed of the new company, lenders will take an independent view of giving fresh funds,” said the first banker mentioned above.
