Jet's resolution plan under active consideration, scrip falls over 7%

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SME Times News Bureau | 17 Jan, 2019
Financially stressed Jet Airways on Wednesday said that a resolution plan to infuse capital and reduce debt of the company is under active consideration.

The revelation comes after reports suggested that a rescue deal has been sealed between the cash-strapped airline and its partner, Etihad Airways.

At the BSE, the company's scrip price fell around 7.95 per cent or Rs 23.40 at Rs 271 from its previous close of Rs 294.40.

Referring to media reports, the company said: "At the outset, we hereby categorically state that nothing mentioned in various media reports shall be deemed to be attributed to the company and we also vehemently deny any discussions or disclosure on our part, with any media concerning the matter."

"Further, pursuant to a delay in the payment of interest and principal instalment due to the consortium of Indian banks, led by State Bank of India (SBI), on 31 December, 2018, by the company, SBI in consultation with the other members of the consortium and the other stake-holders has been working on a comprehensive resolution plan towards a turnaround of the company for its sustained growth and restoration of financial health."

Additionally, the company said the resolution plan is under active discussion among the stake-holders.

The company said the resolution plan contemplates various options on the debt-equity mix, proportion of equity infusion by the various stake-holders and the consequent change in the composition of the company's Board of Directors.

"Needless to state, the implementation of the resolution plan, once agreed upon and approved by all the stake-holders, including the Board of Directors of the company, will be subject to receipt of applicable statutory, regulatory, contractual and corporate approvals and consents," the company said.

As per the statement, the company has been working on various cost-cutting measures, debt reduction and funding options, including infusion of capital, monetisation of assets, including the company's stake in its loyalty programme, in consultation with various key stakeholders.