Jet Airways seeks shareholders' approval to raise $400 million

Jet Airways is seeking shareholders' nod to raise about $400 million (about Rs 2,500 crore) through debentures or bonds to finance its business plans. The proposal will come up for approval in an extraordinary general meeting to be held next month.

The airline has a debt of around Rs 12,000 crore. This includes rupee debt of Rs 5,500 crore and the remainder is a dollar denominated debt.

The airline recently raised $ 300 million (about Rs 1800 crore) in external commercial borrowings from banks in the Gulf.

In the first nine months of FY 2015 the airline reduced its stand alone pre tax loss to Rs 84 crore from Rs 1514 crore in same period of previous year. Interest cost during this period fell 11 percent to Rs 633 crore from Rs 714 crore in first nine months of FY 2014.