Jet Airways said to weigh a restart of bailout talks with Tata group
Jet Airways India Ltd, the airline which had its credit standing minimize to default this month, is weighing a resumption of stake-sale talks with the Tata group because the provider is poised to expire of money, folks with information of the matter mentioned.
Whereas its founder and Chairman Naresh Goyal has been discussing a take care of Etihad Airways PJSC, talks with the international associate stalled over the latter’s demand that Goyal steps apart from his administration function, the folks mentioned, asking to not be recognized because the discussions are personal.
With Jet Airways set to expire of money in a few months, the provider is now trying to restart talks with India’s largest conglomerate, they mentioned.
A Jet Airways representative said the company does not comment on speculation, while Tata Sons didn’t respond to an email seeking comment. Jet Airways reported in November as liabilities surged. It has fallen behind on.
Goyal and Tony Douglas, chief executive officer of Etihad, which owns 24% of the Indian carrier, have met State Bank of India Chairman Rajnish Kumar multiple times to explore ways to keep the airline afloat, the people said.
A Jet Airways representative said the company does not comment on speculation, while Tata Sons didn’t respond to an email seeking comment. Jet Airways reported in November as liabilities surged. It has fallen behind on.
Goyal and Tony Douglas, chief executive officer of Etihad, which owns 24% of the Indian carrier, have met State Bank of India Chairman Rajnish Kumar multiple times to explore ways to keep the airline afloat, the people said.
Discussions Stall
Creditors are open to lending $500 million to Jet Airways if Goyal and Etihad inject a similar amount into the company, the people familiar said. A decision will be made once a forensic examination being conducted into the airline’s books is completed, one of the people said.
The Tata Group and lenders to Jet Airways have been in touch on the progress of discussions with Etihad, the people said.
The Indian carrier missed interest and principal repayment at the end of last year, giving it about 90 days to clear the dues and avoid becoming a non-performing asset. Credit assessor ICRA Ltd. cut its rating on Jet Airways’ loans and bonds to D, a score that signifies that borrowers are in default or are expected to be soon.
