|
|
|
Closely monitoring developments at Jet Airways: Suresh Prabhu
|
|
|
|
Top Stories |
|
|
|
|
SME Times News Bureau | 11 Mar, 2019
"Government is closely" monitoring the situation at Jet Airways even as
negotiations to save the financially beleaguered airline continue, Union
Minister Suresh Prabhu said in an interview.
The government's
stand assumes significance as lenders negotiate with key stakeholders of
the airline to take forward the proposal to convert a part of the
company's loans into shares and iron out differences over the plan.
Commerce and Industry and Civil Aviation Minister Prabhu told IANS: "The Government is closely watching the situation".
When
asked about any requisite approvals that the proposed deal between
bankers, management and shareholders including Etihad Airways might
require from the ministry, he said that appropriate action will be
taken, if required.
Mandate wise, the ministry is responsible
for the safe operations of the airline and to monitor, if the
substantial ownership and effective control norms are being met.
The
minister added that the government has set proper mechanisms to monitor
airline's adherence to flight schedules as passed by the DGCA.
Currently,
owing to its strained financial position, the airline has been forced
to ground over 25 aircraft due to non-payments of dues.
This has effected over 85 flights.
To
relive the airline of its financial constraints, the State Bank of
India (SBI), which leads a consortium of lenders is negotiating with key
stakeholders of the airline to take the proposal -- Bank-led
Provisional Resolution Plan -- forward.
Last month, Jet's
shareholders had approved the BLPRP, as part of which, public sector
lenders will become the largest equity owners of the airline, virtually
making it a nationalised carrier.
The shareholders' approval came after Jet Airways Board approved the BLPRP on February 14.
"The
BLPRP currently estimates a funding gap of Rs 8,500 crore (including
proposed repayment of aircraft debt of Rs 1,700 crore) to be met by
appropriate mix of equity infusion, debt restructuring, sale or sale and
leaseback or refinancing of aircraft, among other things," the company
said in a regulatory filing to the BSE on February 14.
As part
of a provisional resolution plan, the airline's Board has agreed to
allot 11.4 crore shares at an aggregate value of Re 1 to the lenders'
consortium led by the State Bank of India, according to the airline.
Recently,
Jet Airways reported Rs 587.7 crore as standalone net loss for the
third quarter ended December 31, 2018. It had reported a net profit of
Rs 165.25 crore during the year-ago period.
The private carrier
on January 1 defaulted in paying interest and installments on loan
repayments due to banks, following which rating agency ICRA downgraded
both short and long-term credit facilities of the airline.
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
|
|
Daily Poll |
|
|
PM Modi's recent US visit to redefine India-US bilateral relations |
|
|
|
|
|
Commented Stories |
|
|
|
|
|
|
|
|