Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. India
  4. Bombay Stock Exchange
  5. Jet Airways (India) Limited
  6. News
  7. Summary
    532617   INE802G01018

JET AIRWAYS (INDIA) LIMITED

(532617)
SummaryChartsNewsCalendarCompany 
SummaryMost relevantAll NewsOther languagesPress ReleasesOfficial PublicationsSector news

Jet Airways creditors agree to new owners after months of talks

10/17/2020 | 09:15am EDT
FILE PHOTO: Jet Airways employees display placards during a protest at the Chhatrapati Shivaji Maharaj International Airport in Mumbai

MUMBAI (Reuters) - India's Jet Airways would be acquired by an investor consortium under a multi-million dollar resolution plan approved by the carrier's creditors on Saturday.

The plan submitted by a consortium of London-based Kalrock Capital and UAE-based businessman Murari Lal Jalan comes after months of talks over the airline's future and was confirmed in a regulatory filing, which gave no details of the deal.

A source close to the situation said the new owners had agreed to pump in 10 billion rupees ($136 million) as working capital for the revival of the airline. Another 10 billion rupees will be given to creditors over a period of five years.

Financial creditors of the airline will also get 10% stake in the company, the source said, though the plan remains subject to approvals from the bankruptcy court and the country's airline regulator.

Jet - which operated a fleet of more than 120 planes serving dozens of domestic destinations and international hubs such as Singapore, London and Dubai - was forced in April 2019 to ground all flights, crippled by mounting losses as it attempted to compete with low-cost rivals.

After Jet halted operations at least 280 slots were vacant in Mumbai and 160 in Delhi, which were then given to its rivals. The revival plan is also based on getting some of these slots back.

"The plan is to ramp up slowly and to increase capacity gradually as they will be starting afresh," the source said. Any resumption of flights will likely not happen for between three and six months at least.

Since its operations were halted the airline and its lenders had been looking for suitors. Jet's financial and operational creditors were owed nearly 300 billion rupees after the operations were halted.

(Reporting by Nupur Anand; Editing by David Holmes)

By Nupur Anand


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
EURO / DIRHAM (EUR/AED) -0.13% 4.3778 Delayed Quote.-2.49%
JET AIRWAYS (INDIA) LIMITED -4.95% 90.25 End-of-day quote.-26.02%
US DOLLAR / DIRHAM (USD/AED) 0.00% 3.6728 Delayed Quote.0.00%
All news about JET AIRWAYS (INDIA) LIMITED
06/22JET AIRWAYS INDIA  : Indian bankruptcy court approves resolution plan for Jet Ai..
RE
06/22Indian Stocks Stay in Green on Tuesday; Maruti Suzuki Shares Surge 5%
MT
02/23MARKET CHATTER : Jet Airways (India) May Fly Again by Third Quarter; Shares Soar..
MT
2020JET AIRWAYS (INDIA)  : Promoters Plan to Resume Operations in 2021; Shares Rise ..
MT
2020Jet Airways creditors agree to new owners after months of talks
RE
2020JET AIRWAYS INDIA  : India's Jet Airways creditors agree to new owners after mon..
RE
2020EXCLUSIVE : Etihad bondholders put airline on notice with debt revamp - sources
RE
2020EXCLUSIVE : Two SpiceJet lessors in talks to reclaim planes over missed payments..
RE
2020EXCLUSIVE : India antitrust investigators see no evidence of collusion by IndiGo..
RE
2020EXCLUSIVE : India antitrust investigators see no evidence of collusion by IndiGo..
RE
More news
Chart JET AIRWAYS (INDIA) LIMITED
Duration : Period :
Jet Airways (India) Limited Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends JET AIRWAYS (INDIA) LIMITED
Short TermMid-TermLong Term
TrendsNeutralNeutralBullish
Managers and Directors
NameTitle
Rajesh Prasad Chief Strategy Officer
Ashok Barimar Senior Vice President-Legal & General Counsel
Sector and Competitors