The lenders-intitiated resolution plan for Jet Airways will begin shortly and and is expected to be completed in the June quarter, the company said on Monday.
"As part of the resolution plan, the lenders will provide an immediate interim funding support of Rs 1,500 crore to Jet Airways. The company will also engage with payment intermediaries for release of trapped cash," the company said in a BSE filing.
"The airline will leverage the funding to partly clear pending dues towards lessors, vendors, creditors and employees in a phased manner. The move will see Jet Airways re-deploy several of its grounded aircraft back into its network, helping renew many of the routes it had temporarily suspended, which will help restore normalcy of operations, aiding the airline's long-term transformation to continue expansion and to regain its position as a global player."
The company said that with the "conversion of Re 1 of lenders' debt into equity by the issuance of 11.4 crore equity shares" the consortium of Indian lenders, led by State Bank of India (SBI), will become the majority shareholders of Jet Airways.
"As part of the resolution plan, the lenders will also begin the process of sale or issue of shares to new investors which is expected to be completed in the June quarter," Jet said in a statement.
In addition, the move will see Jet Airways re-deploy several of its grounded aircraft back into its network, helping renew many of the routes it had temporarily suspended, which will help restore normalcy of operations.
An interim management committee has been constituted to oversee the overall financial and operational performance of the airline under the overall supervision of the Board of Directors with the support of McKinsey and Co.
On Monday , Jet announced the resignation of promoter, Naresh Goyal, Anita Goyal, and Kevin Knight, nominee director of Etihad Airways from their positions on the company's board.
However, the two nominees of the erstwhile promoter Naresh Goyal will remain on the board and one nominee of Etihad Airways will continue on the Board. Two lender nominees will be inducted to its board, subject to the receipt of requisite approvals.
Jet Airways in a statement said as part of the resolution plan, the lenders will provide an immediate interim funding support of Rs 1,500 crore to Jet Airways.
The company will also engage with payment intermediaries for release of trapped cash. The airline will leverage the funding to partly clear pending dues towards lessors, vendors, creditors and employees in a phased manner.
Naresh Goyal, the outgoing chairman of Jet Airways, said: "No sacrifice is too big for me to safeguard the interest of Jet Airways and the families of the 22,000 employees."
Goyal said his decision to step down from the board is "for the sake of my family of 22,000 employees and their respective families".
--IANS
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