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SBI set to own 15% of Jet Airways after debt-for-equity swap: Reports

File photo. Photograph:( Reuters )

Reuters New Delhi, Delhi, India Jan 29, 2019, 02.23 PM (IST)

State Bank of India, a lender to Jet Airways, is likely to own 15 per cent of the cash-strapped carrier after the airline gets consent for a debt to equity swap, TV channels reported on Tuesday citing agencies.

Jet Airways said on Monday it would seek a shareholder nod next month to convert existing debt into equity, raise more money and allow its lenders to nominate a director on its board as part of efforts to resolve its financing problems.

Jet's lenders could end up owning as much as 30 per cent while its shareholder Etihad Airways could see its stake go up to more than 40 percent from 24 percent at present as it infuses more equity, the TV channels reported.

Story highlights

Jet Airways said on Monday it would seek a shareholder nod next month to convert existing debt into equity, raise more money and allow its lenders to nominate a director on its board as part of efforts to resolve its financing problems.