Last Updated : Jan 14, 2019 02:57 PM IST | Source:

Jet Airways rallies 7% on likely finalisation of resolution plan

Naresh Kumar Goyal held 51 percent equity stake in Jet Airways and Etihad Airways PJSC 24 percent, as per latest shareholding pattern available on the BSE.

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Jet Airways shares climbed nearly 7 percent after a media report said the company is close to finalising a resolution plan.

"The resolution plan for the company's debt is likely to be finalised after lenders' meet this week," CNBC-TV18 said quoting unnamed sources.

Promoter Naresh Goyal is likely to step down from the board giving up majority control and his stake in the airline may be down to 20-25 percent with voting rights capped at 10 percent after the restructuring, sources added. "His son Nivaan Goyal may replace him on the board."

Naresh Goyal held a 51 percent stake in Jet Airways and Etihad Airways owns 24 percent, as per the latest shareholding pattern available on the BSE.

Sources said after the implementation of the resolution plan, banks may increase equity as a part of the restructuring plan.

Etihad may infuse capital that could trigger an open offer, according to sources.

Jet Airways owes over Rs 8,000 crore to SBI-led consortium and its account is currently in SMA-0 category.

As per RBI notification, before a loan account turns into an NPA, banks are required to identify incipient stress in the account by creating three sub-categories under the Special Mention Account (SMA1) category - 1) SMA-0 > Principal or interest payment not overdue for more than 30 days but account showing signs of incipient stress, 2) SMA-1 > Principal or interest payment overdue between 31-60 days, and 3) SMA-2 > Principal or interest payment overdue between 61-90 days.

Jet Airways defaulted on interest payment on loans to banks on January 1, 2019.

Jet Airways and Etihad are yet to respond to CNBC-TV18's query.

At 14:02 hours IST, the stock was quoting at Rs 267.60, up Rs 14.10, or 5.56 percent on the BSE.
First Published on Jan 14, 2019 02:57 pm
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