New Delhi: A consortium of banks is considering an interim funding of ₹500 crore for debt-laden Jet Airways (India) Ltd, but a final decision is yet to be taken, Punjab National Bank managing director Sunil Mehta said on Friday. PNB is part of the lenders' consortium, led by State Bank of India (SBI), that has extended loans to the airline.
The consortium is looking at the entire process and something is being worked out.
"Of course, (the) consortium is in favour (of interim funding). It is a going concern and we would like to preserve its (airline's) value," Mehta said. "It is too premature to tell you about that plan (interim funding)", bankers are already working on it, he added.
SBI has taken a lead on it, and let the entire plan be worked out, Mehta said, adding that it would be too early to announce the timings.
" ₹500 crore that you are talking about is the interim funding but banks are looking at the long term resolution of the issues for which the plan is already in place for discussions," he noted.
On 14 February, the board of Jet Airways approved a Bank-Led Provisional Resolution Plan (BLPRP), whereby lenders would become the largest shareholders in the airline.
Lenders are to convert part of the airline's debt into 11.4 crore shares at a consideration of Re1 apiece as per RBI norms. Later, appropriate interim credit facilities by domestic lenders would be sanctioned to the airline, showed a regulatory filing made on 14 February.
An extraordinary general meeting of Jet Airways shareholders was held on 21 February where various proposals were discussed. The results of the voting on the proposals would be released on Saturday.