Mumbai: Changes to the equity infusion proposal put forth by Jet Airways (India) promoter Naresh Goyal and its single largest shareholder Etihad Airways are needed for banks to move ahead with the restructuring package, according to bankers.“We are waiting communication from the lead bank. There are timelines that needs to be adhered and at some point there has to be understanding between the parties involved as conditions are not under the domain of bankers,” said a senior official with a bank that is part of the consortium. Goyal has reportedly written to State Bank of India, which is leading the consortium, that he is willing to infuse up to 7 bln rupees and pledge his shares subject to the condition that he retains at least 25 per cent stake in the carrier. He and his family currently own 51 per cent of Jet Airways. “Should this not be possible, I will not be able to infuse any funds or pledge my shares, unless Sebi (Securities and Exchange Board of India) accords me an exemption permitting me to increase my reduced stake (if it is to be below 25%) without triggering the takeover code,” Goyal said.in letter to SBI Chairman Rajnish Kumar.
Etihad, whose stake is at 24 per cent, has also sought fund infusion conditional. On Wednesday, it was reported that Etihad Airways Chief Executive Officer Tony Douglas, in a letter to SBI, has offered to invest in the airline at 150 rupees a share and wants written exemption from the Securities and Exchange Board of India on preferential pricing and open offer guidelines. The price is at a steep discount to the current market price. SBI had termed the report speculative. “This includes speculative reports on pricing relating to any possible investment in the company,” the bank said in a statement on Thursday. According to bankers, as per the Feb 12 circular of the Reserve Bank of India, restructuring loans based on these conditions would be difficult. At the same time, exemption, if any, for the preferential issue pricing would be the decision of the market regulator SEBI. SBI, the lead banker to Jet Airways, is currently considering a restructuring plan under the RBI’s framework for resolution of stressed assets that could ensure long-term viability of the company. On Thursday, Kumar had said that all lenders to Jet Airways India were on the same page on the approach to resolve the debt issues of the beleaguered airline. Asked about different investment proposals from promoter Naresh Goyal and Etihad Airways, Kumar said the lenders knew what needed to be done to resolve the issue. “We are working very fast. There are deadlines, we will finalise it very quickly,” Kumar said.
