Jet loan restructuring to be under Sashakt scheme informs SBI chief Rajnish Kumar

Lenders of the cash strapped Jet Airways will restructure loans given to the airline under the 'Sashakt' scheme, State Bank of India (SBI) Chairman Rajnish Kumar said on Friday February 1.

Speaking at a con call after the third quarter earning results, Kumar said the debt recast proposal would go to the screening panel of Indian Banks' Association (IBA).

Recently, Jet Airways has been in a tight spot financially as a rescue plan is said to be stitched between its partner Etihad and a consortium of banks.

It said a special resolution would be put forth at the EGM to consider and "to approve conversion of loan into shares or convertible instruments or other securities"

The airline has a loan burden of over ₹8,000 crore and it could see some of that amount being converted into equity by the banks.

In a stock exchange filing on January 28, Jet Airways said an Extraordinary General Meeting (EGM) of the company would be held on February 21.

It said a special resolution would be put forth at the EGM to consider and "to approve conversion of loan into shares or convertible instruments or other securities".

On Friday February 1, Jet Airways scrip closed 7.79% up at₹255.90 per share after touching an intra-day high of ₹281.50 and a low of ₹34.30 from its previous close of 237.40.