Jet Airways set to get Rs 3,000-cr fund

Loss-making Jet Airways is likely to receive fund infusion worth over Rs 3,000 crore post debt-rejig and investments by Etihad Airways as well as National Investment and Infrastructure Fund (NIIF) while founder Naresh Goyal might remain the promoter with less than half of the existing majority stake of 51 per cent, according to sources.

While the final contours of debt-restructuring and consequent changes are being worked out, an analyst said that Etihad Airways should come as the main driver for Jet Airways as lenders and shareholders would not be able to bring in much value addition.

Etihad, which currently owns 24 per cent in the full service carrier, is a strategic partner and is expected to pump in around Rs 1,400 crore, sources said. On February 14, Jet Airways' board approved a Bank-Led Provisional Resolution Plan (BLPRP), whereby lenders would become the largest shareholders in the airline.

After receiving nod from shareholders, during their meeting scheduled for February 21, part of debt would be converted into 11.4 crore shares at a consideration of Re 1 apiece as per RBI norms. Later, appropriate interim credit facilities by domestic lenders would be sanctioned to the airline, as per a filing made on February 14. The governmentbacked NIIF, where Abu Dhabi Investment Authority is a key stakeholder, is likely to acquire little over 19 per cent stake in the airline.