Jet normalcy in 10 days, sale in 2 months, says SBI chief
Goyal Family Will Do Whatever New Investors Want: Kumar
Mayur.Shetty@timesgroup.com
Mumbai:26.03.2019
State Bank of India (SBI) chairman Rajnish Kumar has said that the new management committee appointed by banks will aim to restore Jet Airways to normalcy in 10 days.
The airline’s outgoing chairman Naresh Goyal’s place is likely to be taken by a former SBI chief — Janki Ballabh and A K Purwar have been tapped for the position. Jet’s day-to-day operations will be looked after by an interim management committee. The panel would be supervised by the board of directors, which will include two lender nominees, with the support of McKinsey & Co.
Speaking to TOI, Kumar said that the Rs 1,500-crore secured emergency funding provided by lenders would help take care of aircraft leases, demands from pressing creditors, along with pilot and staff salaries for two months. According to Kumar, the funds could be used to get grounded aircraft back in the air and cancellations should start coming down.
Lenders will also make efforts to get the grounded planes in the air as quickly as possible since Jet has the rights to many profitable routes. “Banks will hold 50.1% in the airline, which will be sold by June 2019. Goyal’s 25.5% stake will not come in the way as he has signed binding agreements and PNB has a pledge on some shares. They (Goyal family) will do whatever the new investors want,” said Kumar.
The equity conversion does not reduce any debt liability for the airline as the shares have been issued against debt of Re 1. Lenders will sell the airline to any investor who offers to pay the most for the equity and service the largest portion of the debt.
Kumar said that banks did not want to initiate insolvency proceedings against the private airline as this would result in aeroplanes being grounded. “You cannot have a resolution in the NCLT for an airline. This would mean that airline would go into liquidation,” said Kumar.
According to Kumar, the resolution — although being done outside NCLT — would be executed in a very transparent manner. “We will close the expression of interest on April
9. SBI Caps will run the process and we will take the final bids by April 30,” said Kumar.
He said that the process, which began at the beginning of the year, is being completed in record time. “We will complete the process in two months. It is a very good airline, it has very good routes, and a very good second rung of management,” said Kumar.
Goyal Family Will Do Whatever New Investors Want: Kumar
Mayur.Shetty@timesgroup.com
Mumbai:26.03.2019
State Bank of India (SBI) chairman Rajnish Kumar has said that the new management committee appointed by banks will aim to restore Jet Airways to normalcy in 10 days.
The airline’s outgoing chairman Naresh Goyal’s place is likely to be taken by a former SBI chief — Janki Ballabh and A K Purwar have been tapped for the position. Jet’s day-to-day operations will be looked after by an interim management committee. The panel would be supervised by the board of directors, which will include two lender nominees, with the support of McKinsey & Co.
Speaking to TOI, Kumar said that the Rs 1,500-crore secured emergency funding provided by lenders would help take care of aircraft leases, demands from pressing creditors, along with pilot and staff salaries for two months. According to Kumar, the funds could be used to get grounded aircraft back in the air and cancellations should start coming down.
Lenders will also make efforts to get the grounded planes in the air as quickly as possible since Jet has the rights to many profitable routes. “Banks will hold 50.1% in the airline, which will be sold by June 2019. Goyal’s 25.5% stake will not come in the way as he has signed binding agreements and PNB has a pledge on some shares. They (Goyal family) will do whatever the new investors want,” said Kumar.
The equity conversion does not reduce any debt liability for the airline as the shares have been issued against debt of Re 1. Lenders will sell the airline to any investor who offers to pay the most for the equity and service the largest portion of the debt.
Kumar said that banks did not want to initiate insolvency proceedings against the private airline as this would result in aeroplanes being grounded. “You cannot have a resolution in the NCLT for an airline. This would mean that airline would go into liquidation,” said Kumar.
According to Kumar, the resolution — although being done outside NCLT — would be executed in a very transparent manner. “We will close the expression of interest on April
9. SBI Caps will run the process and we will take the final bids by April 30,” said Kumar.
He said that the process, which began at the beginning of the year, is being completed in record time. “We will complete the process in two months. It is a very good airline, it has very good routes, and a very good second rung of management,” said Kumar.
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