Jet Airways is seeking the shareholders approval to convert loans into equity, as the ailing carrier saddled with $1.1 billion debt negotiates a rescue deal with lenders and partner Etihad Airways. India’s biggest full-service carrier has called an extraordinary general meeting on February 21 in Mumbai, during which it will seek consent for lenders to appoint directors and boost its capital, according to a filing on Monday.
The airline, 24 per cent owned by Etihad, didn’t say whether the three sides have reached an agreement over the terms of the rescue.
Jet Airways, Etihad and lenders have been in talks for weeks to work out a revival plan, although no commonly agreed proposal was presented to the government, a ministry official said January 25 in New Delhi. The Mumbai-based carrier has struggled with low fares in an increasingly competitive market, losing money in all but two of the past 11 years.
Lenders led by State Bank of India have sought Rs 3,500 crore ($492 million) of investment from founder Naresh Goyal and Etihad before they can revamp its debt, people with knowledge of the matter said earlier this month.