The meeting between Jet Airways’ management and its lenders on Tuesday did not lead to any decision on extending fresh loans to the airline or restructuring the company ownership. The bankers and vendors have asked the company to deliver on certain milestones based on which further action will be taken.
According to top sources close to the development, a decision maybe taken by the end of the month. “Jet Airways shared a blue-print on the cost reduction programme and the steps it has taken so far. The management has assured of payments going ahead but needs time to execute the plan. Lenders may take a favourable decision based on certain milestones they achieve by the end of the month,” the source said. The company needs additional loan to meet liquidity issues immediately.
The key issue is whether the banks will give additional funding with Naresh Goyal still controlling the airline or will they seek a change in promoter. “The preferable route will be debt restructuring with Goyal still in control,” said another source.