South America’s Synergy may want Jet lenders to take 60-80 per cent haircut

South American conglomerate Synergy Group may ask for a 60-80 per cent haircut from the lenders of Jet Airways as a pre-condition to pick up an equity stake in the stressed airline. The company may also ask the lenders to convert 10-20 per cent of their total debt into equity.

Further, there could be a demand for downsizing the workforce from the current 14,000 to 7,000 employees to revive the airline.

Speaking to BusinessLine, Antonio Guizzetti, President of G&A Consultancy, said Synergy Group may sign a a non-disclosure agreement with the lenders as early as this week as a first step. This will give the investor access to the Jet data room. Guizzetti is advising Synergy Aerospace on the Jet transaction.