SBI: Lenders considering resolution plan for Jet Airways

Jet Airways

State Bank of India (SBI) on Thursday said lenders are considering a resolution plan for Jet Airways to ensure long-term viability of the debt-laden company. The SBI statement comes a day after the crisis-hit airline said discussions were "progressing well" with stakeholders on a comprehensive resolution plan that also contemplates equity infusion and consequent changes in its board of directors.

There are rising concerns over financial health of Jet Airways, whose shares have also taken a beating at stock exchanges. "We would like to state that lenders are considering a restructuring plan under the RBI framework for resolution of stressed assets that would ensure a long-term viability of the company," SBI said in a statement. It said the restructuring plan for the cash-strapped airline would need approval from boards of lenders.

"Any such plan would be subject to approval of boards of the lenders and subject to adherence and clearance, if required, from the RBI and/or Sebi (takeover code, ICDR regulations.) and Ministry of Civil Aviation and in compliance with all regulatory prescriptions," the statement said. Shares of the airline are trading 4.24 per cent lower at Rs 259.50 apiece on BSE.

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