Jet Airways owes banks nearly Rs 8,000 crore.
Shares of Jet Airways plunged more than 5 percent intraday on January 17 after the airline denied media reports that suggested that Etihad Airways could invest in the Indian airline at a discount.
Jet, in its statement to BSE, said that the company has been working on various cost-cutting measures, debt reduction and funding options including infusion of capital, monetisation of assets including the company’s stake in its loyalty program, in consultation with various key stakeholders.
"We refer to the various media reports concerning a communication alleged to have been sent by Etihad Airways PJSC to State Bank of India in relation to the resolution plan for Jet Airways (India) Limited (“Company”). At the outset, we hereby categorically state that nothing mentioned in the various media reports shall be deemed to be attributed to the Company and we also vehemently deny any discussions or disclosure on our part, with any media concerning the matter," said the Jet statement.
Further, pursuant to a delay in the payment of interest and principal instalment due to the consortium of Indian banks, led by State Bank of India (SBI), the company said SBI is in consultation with the other members of the consortium and the other stakeholders has been working on a comprehensive resolution plan towards a turnaround of the company for its sustained growth and restoration of financial health.
SBI also issued a statement clarifying it stance.
SBI spokesperson said, “We have seen some media reports on certain issues concerning a Resolution Plan for Jet Airways. This includes speculative reports on pricing relating to any possible investment in the Company”.
“In this connection, SBI would like to state that lenders are considering a restructuring plan under the RBI framework for resolution of stressed assets that would ensure a long term viability of the Company. Any such plan would be subject to approval of boards of the lenders and subject to adherence and clearance, if required, from the RBI and / or SEBI (takeover code, ICDR regulations etc.) and / or Ministry of Civil Aviation and in compliance with all regulatory prescriptions”
On January 16, Jet Airways shares plunged 8 percent after a media report said shareholder Etihad Airways offered to invest in the company at a price which is nearly half of January 15 closing price.
Sources told CNBC-TV18 that Etihad Group CEO Tony Douglas had written a letter to SBI Chairman on restructuring of the Indian airline.
As a part of restructuring, Etihad, which holds 24 percent stake in the Naresh Goyal-led company, would invest in Jet only at a price of Rs 150 apiece, which is nearly half of January 15 closing price of Rs 294.40.
At 0930 hours, Jet Airways was quoting at Rs 258.50, down Rs 12.50, or 4.61 percent on the BSE.