In a bid to stay afloat, Jet Airways is planning to convert its existing debt into equity by seeking the approval of its shareholders. The decision will be taken at a special meeting, held on February 21, 2019. With a debt of over 8000 crores, the airline is resorting to several measures, that may help it in tackling the financial crisis.
As a part of this revival plan, the debt-ridden airline will allow lenders to nominate directors to its board. Additionally, the airline has also proposed to increase the share capital to ₹2,200 crore to ₹200 crore — This will be done by creating an additional 50 crore shares and 150 crore preference.
This development comes immediately after, Jet Airways announced plans including a cash infusion by stakeholders and board group change.
Meanwhile, Naresh Goyal, Jet Airways Chairman has offered to invest up to ₹ 700 crore in Jet Airways on the condition that his stake does not fall below 25 per cent. jetairways.com