The recast includes conversion of lenders’ debt into shares. The draft resolution plan, which puts funding gap at Rs 8,500 crore, primarily consists of infusion of funds, restructuring of debts and monetisation of assets as approved by the board on February 14.
Highlights of Jet debt resolution plan
- The recast includes conversion of lenders’ debt into shares.
- Lenders led by SBI to become largest holders in company.
- Resolution plan estimates Rs 8,500 crore funding gap.
- Draft resolution consists of funds infusion, debt restructuring and monetisation of assets.
- Co seeks approval to name lenders’ nominees to board.
“Conversion of lenders’ debt into 11,40,00,000 shares of Rs 10 each by allotment of such number of equity shares to the lenders that would result in the lenders becoming the largest shareholders in the Company. Such allotment of 11,40,00,000 shares will be made at an aggregate consideration of Re 1 since under the RBI circular, lenders can convert debt into equity at Rs 1 when the book value per share of a company is negative,” Jet said.
“The BLPRP (Bank Led Provisional Resolution Plan) currently estimates a funding gap of nearly Rs 8,500 crore (including proposed repayment of aircraft debt of about Rs 1,700 crore) to be met by appropriate mix of equity infusion, debt restructuring, sale / sale and lease back/ refinancing of aircraft, among other things,” the carrier said in a regulatory filing.
According to the draft, lenders led by SBI would become largest holders in the company. The company also sought approval to name lenders’ nominees to the board.
EBITDAR slipped 54.33 per cent to Rs 459.50 crore for the period under review from Rs 1,006.30 crore a year ago.
aniltikotekar4sme.com 