Willing to work collectively on loans to Jet Airways, say banks

Public sector bank chiefs on Thursday said they are willingly to work collectively on any decision to lend Jet Airways that is looking for funds to tide over the crisis. 

Published: 15th March 2019 04:31 AM  |   Last Updated: 15th March 2019 11:08 AM   |  A+A-

By Express News Service

MUMBAI: Public sector bank chiefs on Thursday said they are willingly to work collectively on any decision to lend Jet Airways that is looking for funds to tide over the crisis. 
Punjab National Bank and Bank of India both expressed willingness to lend as part of a consortium.
“Any emergency loan to Jet Airways will be part of an overall resolution plan,” Sunil Mehta, chief executive officer, Punjab National Bank told reporters on the sidelines of an industry event. 

He said the joint forum of lenders is considering the resolution offer made by Etihad, Jet’s equity partner. 
Earlier the airline had denied having received `2,050 crore as emergency funding from PNB.
Bankers are working on a resolution under the “Shashakt” plan, led by State Bank of India. In February the Jet Airways Board had approved a bank-led provisional resolution plan, where banks would swap debt for equity, making them the majority shareholders. 

Shareholders had also approved the plan to increase the equity of the company and also for swapping debt to equity at an aggregate value of `1.

Bank of India’s chief executive officer Dinabandhu Mohapatra also said the bank would be willing to support the airlines along with other banks, without giving any specific details. 
“Unless you support, there will be destruction of value. We have to protect the value and the airline,” Mohapatra told reporters.

Jet Airways, which had to curtail its operations in a big way due to the cash crunch, had also asked for an emergency funding of `750 crore.

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