Lenders considering restructuring plan for Jet Airways: SBI

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The State Bank of India (SBI) on Thursday said that lenders to the financially stressed Jet Airways are in talks for a restructuring plan to ensure long term viability of the airline.

The state owned bank is part of the group of lenders to the airline and its statement comes after the airline on Wednesday said that a resolution plan to infuse capital and reduce debt was under active consideration.

"SBI 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," a spokesperson with the bank said.

Any such plan would be subject to the approval of the boards of the lenders and subject to clearance from the Reserve Bank of India, SEBI and the Ministry of Civil Aviation, if required.

"We have seen some media reports on certain issues concerning a resolution plan for Jet Airways. This includes speculative reports on pricing relating to any possible investment in the company," the spokesperson added. 

Jet Airways on January 1 reported a delay in paying interest and instalments due to banks, following which rating agency ICRA downgraded both the short and long term credit facilities of the airline.

The company's scrip at the BSE at 3.41 p.m. was Rs 282.10, higher by Rs 11.10 or 4.10 per cent from the previous close.