MUMBAI: Jet Airways dismissed media reports and rumours doing rounds in the market especially involving Etihad Airways’ communication to State Bank of India (SBI) in relation to the resolution plan being chalked out for the cash-strapped airline.
In a communication sent to the stock markets with a view to dismissing ‘the unfounded stories’ being played up by certain media houses, Jet Airways said, “We vehemently deny any discussions or disclosure on our part, with any media concerning the matter.”
The airline, which has been in the news for its famously known financial woes for some time now, categorically stated that in line with the decisions of the board of directors at their meeting held on August 27, 2018, the company had been working on various cost cutting measures, debt reduction and funding options including infusion of capital, monetisation of assets including the Company’s stake in its loyalty programme, in consultation with various key stakeholders.
It further explained that pursuant to a delay in the payment of interest and principal installment due to the consortium of Indian banks, led by State Bank of India (SBI), on December 31, 2018, by the company, SBI in consultation with the other members of the consortium and the other stakeholders had been working on a comprehensive resolution plan towards a turnaround of the company for its sustained growth and restoration of financial health.
“The said resolution plan, inter alia, contemplates various options on the debt-equity mix, proportion of equity infusion by the various stakeholders and the consequent change in the composition of the company’s board of directors. Needless to state, the implementation of the resolution plan, once agreed to and approved by all the stakeholders, including the board of directors of the company, will be subject to receipt of applicable statutory, regulatory, contractual and corporate approvals and consents,” the airlines’ communication said.
Jet Airways noted that the resolution plan was presently under active discussion amongst the stakeholders and the various options therein, being privileged and confidential, are yet to be crystallised and agreed to by the stakeholders in the best interests of the company.
The company is committed to be in compliance with the applicable laws and will, at the appropriate time, make necessary disclosures and statements in order to ensure transparency and avoid speculations and rumours in respect of the subject matter, the communication added.