Moneycontrol Be a Pro
Get App
Last Updated : May 27, 2019 01:46 PM IST | Source:

Jet Airways talks: Etihad Airways, Hinduja & AdiGro talk about operational roles and board seats

Banks, on their part, are willing to take as much as an 85 percent haircut, say sources.

Prince Mathews Thomas @prince0879

Talks between Etihad Airways, the Hinduja Group and AdiGro Aviation to revive Jet Airways have entered a crucial phase, with the three sides talking about operational role and representation on the board of the Indian airline.

Sources say that the banks, led by State Bank of India, are now "more flexible" while restructuring Jet Airways' debts of over Rs 8,000 crore. This will help bringing in the investors.

"The talks should be over by the end of the month, and the binding agreements should be in place by June," said a source close the development.


While Etihad Airways, which holds 24 percent stake in Jet Airways, has asked for key operational roles in the Indian carrier, AdiGro Aviation is eyeing the top posts.

AdiGroup founder Sanjay Viswanathan confirmed the talks and said the firm is ready to put in Rs 2,500 crore for 24.9 percent stake in Jet Airways.

"I have been clear that as the single-largest investor who is also writing the largest cheque in this round, our limited partners want me to be the Chairman and we need at least three non-executive directors on the Board," he told Moneycontrol. 

"CEO and CFO should be our picks," he added.

The Hindujas may not ask for an operational role in Jet Airways, continuing with their tried and tested strategy, where they take strategic stakes in companies, but leave the operations to professionals.

Etihad Airways, which was the only shortlisted bidder to put in a proposal, has proposed to put in Rs 1,700 crore in Jet Airways and wants to retain a minority stake in the Indian company.

The banks may be open to taking a haircut of up to 85 percent, said sources.

If they do, this will help restructure debt and make the investment in Jet Airways a more viable option for the investors.

Viswanathan added that "we expect banks to move more swiftly and make things happen," now with the new NDA government set to form the government after the record mandate.

The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on May 27, 2019 11:45 am
Follow us on
Available On
PCI DSS Compliant