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| Edited By: DNA |Source: DNA |Updated: Jan 16, 2019, 06:10 AM IST
Lenders to the cash-strapped Jet Airways are relieved by the news that its strategic partner Etihad Airways is in talks to gain control. Scared of a potential scenario similar to that of the grounded Kingfisher Airlines, lenders are forcing Jet to get some quick equity infusion. The recast could see Etihad raising its stake from the current 24% and Jet's founder Naresh Goyal ceding control of the airline that began operations over two-and-a-half decades ago. The airline, which defaulted on principal and interest payments due in December, has a much bigger debt burden of over Rs 8,000 crore.
Nearly three years ago, lenders went through similar heartburn when the budget carrier SpiceJet teetered on the edge of collapse. A quick decision by the then promoter Kalanithi Maran and KAL Airways to transfer the management and control of the airline to former promoter Ajay Singh prevented the company from crashing into oblivion.
On his part, Goyal seems to have run out of options. Lenders are worried because Jet has a loan repayment of Rs 1,700 crore due by March-end. The airline has struggled to pay salaries and vendors on time and its Rs 10,963 crore fund and non-fund based facilities have now been assigned 'D' rating by Icra. Lenders do not see any future for the airline without the promoter bringing in fresh equity.
