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Lenders to Jet Airways are exploring the option of readying a blueprint aimed at garnering returns of ₹2,636 crore in three years if they do not find a single investor to buy a majority stake in the airline.
Under this plan, the lenders are hoping to raise ₹5,135 crore through a rights issue at ₹150 per share. Two new financial investors may be roped in as minority shareholders to bolster the rights issue.
Post this exercise, the lenders will hold about 30 per cent stake in Jet Airways. The two new investors will hold 19.9 per cent and 24.6 per cent, respectively, according to a source close to the development. Both Naresh Goyal and Etihad will completely exit the company.
An independent trust managed by lender-appointed trustees will hold 14.9 per cent, and the balance 10.7 per cent will be with the public. This will be done in three stages. First, the lenders will take 50.1 per cent stake in the airline through an issue of fresh shares. Then, shares owned by Goyal and Etihad will be transferred to the independent trust. In the third stage, new investors will be brought in as minority shareholders.
“The first priority will be to find a strategic investor which can take complete control of Jet Airways. However, in the event there is no deal, the banks are looking at a Plan B to bail the airline out,” said a banking industry source.
Of the ₹5,135-crore rights issue being thought of, one investor is to pump in ₹2,700 crore and the other ₹1,700 crore. The lenders will put in ₹850 crore. Banks will underwrite the public subscription amount of ₹485 crore. Indian lenders may write down debt of ₹2,600 crore.
Pilots postpone strike
Meanwhile, the pilots body of Jet Airways, the National Aviators Guild (NAG), on Sunday postponed to April 15 its decision to stop flying after promises from the management. Earlier, the pilots had said that they would stop flying from April 1. Approximately ₹320 crore of salaries of pilots, engineers and GMs haven’t been paid in the past three months.
Karan Chopra, President of NAG, said, “Last night, we got a communication stating that our December salary has been paid out. January-March salaries are still pending. The management has shown positive intent by transferring our salary, and we thought we should give them at least a couple of weeks to find a solution.”
Last week, State Bank of India said it will extend ₹1,500 crore as interim funding. The lenders are looking for a new strategic investor for which bidding is set to start on April 9.
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