1 min read.Updated: 23 Feb 2019, 12:45 PM ISTRhik Kundu
The airline proposes to let lenders convert debt into equity
SBI will now become majority stakeholder in the airline; founder Naresh Goyal's stake to come down from 51% to around 25%
Mumbai: Shareholders of Jet Airways (India) Ltd have approved banks' bailout plan, the airline said in a statement o the BSE on Saturday morning.
According to the company's statement, 97.99% of Jet Airways shareholders approved the allotment of 114 million fresh shares. The company's proposal to alter the Articles of Association, and 'Object Clause' of Memorandum of Association of the company were also approved by over 99% of shareholders.
The airline's proposal to let lenders convert debt into equity was approved by over 97% shareholders, the company said.
The voting, which was held on 21 February, both remotely (e-voting) and physically, at an extraordinary general meeting (EGM) held in Mumbai, saw the bailout plan proposed by lenders approved by the majority of shareholders.
The approval will now allow lenders led by the State Bank of India (SBI) to become majority stakeholder in the airline and also infuse funds in the cash-crunched airline.
Jet Airways has been struggling with cash flows for the past six months due to rising fuel costs and intense competition. It has delayed payments to lessors, airport operators, oil marketing companies and a part of its staff to keep the airline flying.