2 min read.Updated: 05 May 2019, 10:18 AM ISTNirbhay Kumar( with inputs from IANS )
As per the plan, the employees of Jet Airways would first take control of the company
In the next step, the plan is to raise money involving the frequent flyers
New Delhi: After a section of employees floated the proposal to take over management control of the grounded Jet Airways and arrange up to ₹3,000 crore from external investors, a group of frequent flyers of the cash-strapped airline has approached the key lenders, including State Bank of India, ICICI Bank and Punjab National Bank, to submit the 'Revival of Jet Airways Plan' or 'Roja'.
Claiming to be reputed professionals and minority shareholders in Jet Airways as well as nine banks that have lent money to Jet, the group has proposed a leveraged buy-out plan (LBO) to revive the grounded airline.
"The banks can give ₹1,500 crore loan to the employees. This is six months' salary of each employee as personal loan. The employees will use this money to buy out 51 per cent stake in the company from SBI and 12.5 per cent from Etihad. The balance ₹200 crore would be given to the company for new shares. This way the employees will control Jet Airways," said the presentation reviewed by IANS.
In the next step, the plan is to raise money involving the frequent flyers.
Accordingly, the banks can be persuaded to give a personal loan to all those who want to buy four tickets each for ₹10,000 which would be valid for two years. By pre-selling these tickets, as much as ₹8,000 crore could be raised.
Jet Airways employees, already in controlling position, would pass a resolution to authorise the additional issue of shares on a preferential basis to all those who buy the ticket packets — 100 shares each for ₹150 each — and thus raise ₹12,000 crore.
"The ₹20,000 crore raised will now be used for operational working capital and for repayment to creditors over five years," the presentation said.