Etihadhas formally asked the State Bank of Indiato purchase its entire stake in the airline.
- The airline's airline and its 24% stake, which has Jet's resolution plan.
- The news comes as a surprise. It was reported last week that Jet had caved in to promoter and creditor demands and agreed to pump a fresh round of capital into the struggling airline.
Jet Airways' resolution plan
has been stalled in recent months on disagreements between Etihad and Jet's consortium or creditors ̵
Now, Etihad has formally asked the State Bank of India to purchase its entire stake in the airline, according to
to media reports. At current share prices, Etihad's 24% stake is valued at $ 4 billion, less than a fifth of
the ₹ 20.6 billion it invested in 2013.
Not only does the UAE-based carrier want to sell its 24% stake in the airline and its 50.1% stake in Jet Privilege, it also wants its existing loan guarantee for Jet's $ 140 million loan from HSBC Dubai to take over SBI.
This essentially leaves Jet's creditors in control of the airline, and in the absence of another airline's participation, they have no choice but to let
The news comes as a surprise. It was reported last week that Jet had caved into promoter and creditor demands and agreed to pump
a fresh round of capital into the struggling airline.
the Press Trust of India that Etihad's investment could be in the region of ₹ 16 billion- ₹ 19 billion, raising its stake by 0.9 percentage points to 24.9% and giving it two additional board seats.
This, in addition, to
A $ 7.5 billion emergency loan and $ 10 billion in fresh equity from Jet's creditors could have helped the airline, which has debts of $ 1 billion, getting back on its feet.
While they're getting Etihad's stake at a discounted price, Jet's creditors will have
To drum up the funds that Etihad was supposed to invest in the airline's revival. If
In fact, the Indian government called for
An emergency meeting yesterday as Jet's pilots and staff threatened to strike over the non-payment of salaries and additional plans.
Jet Airways' revival delayed by Etihad's hard bargain
Lenders' plan to keep Jet Airways off can put Etihad in the cockpit