Jet Airways Chairman Naresh Goyal said on Friday Air Sahara employees would not lose their jobs as a result of his company taking over the Lucknow-based airline.
Though NCLT has extended window to find a buyer, bankers don't see much hope of a deal.
The airline has struggled to pay salaries and vendors on time and its Rs 10,963 crore fund and non fund based facilities have now been assigned 'D' rating by ICRA - the seventh rating downgrade since March 2017.
Signalling an imminent change in SpiceJet's ownership, potential investors including co-founder Ajay Singh and US-based JPMorgan have begun discussions with markets regulator Sebi over their investment plan for the cash-strapped airline.
Abu Dhabi-based Etihad Airlines has agreed to halve the number of directors on the Jet Airways Board to two posts under the Rs 2,058 crore deal, giving the Indian promoters 'effective control' of the carrier.
Concerns over effective control not addressed in the second revised shareholders' agreement, says DIPP; Sebi opposes commercial cooperation pact
Under the resolution plan, the lenders would end up having a sizable portion of shares in the airline, if their boards of directors agree to convert part of their debt into equity.
Over the past several months, the airline has struggled to pay vendors and staff salaries on time.
Paving way for closure of long-pending Jet-Etihad deal, fair trade regulator CCI on Tuesday approved the proposed acquisition of 24 per cent stake in the Naresh Goyal-led Indian carrier by Abu Dhabi-based airline.
The unions also suggested banks can extend special and exclusive loans to the airline to pay the salary dues or some subsistence payments to them against proper collateral.
The interim funding has not been forthcoming thus far, and as a result Jet has extended cancellation of international operations until April 18.
Among the other conditions of the Hinduja group for picking up a stake in Jet is that bankers must take a haircut of 80 per cent and that they should help negotiate with operational creditors like aircraft lessors for moratorium on certain immediate payments.
The Indian government allowed foreign airlines to buy up to 49 per cent stakes in Indian carriers in September 2012.
The airline has proposed to raise authorised share capital to Rs 2,200 crore. This would comprise Rs 680 crore of equity capital and Rs 1,520 crore of preference share capital.
Etihad to have 2 directors even if it dilutes stake to 15%
The move is likely to impact Jet's operations out of Belgium and India.
India Inc reacted cautiously to allegations on Swiss a/cs.
Jet-Etihad deal documents among those leaked: CBI
After due deliberations, the lenders have decided to seek resolution for Jet Airways under the bankruptcy code since only a conditional bid was received.
While Etihad has told Securities and Exchange Board of India that it has not violated any securities law by not making an open offer, the capital market regulator is now seeking further clarity on the issue from other agencies including fair trade watchdog CCI, Finance Ministry and Aviation Ministry, sources said.
The airline has already decided to lease out an A330 to Etihad and plans to lease out two more this year.
These special fares are a small gesture of appreciation from Emirates for its customers in India.
Bids to be evaluated according to guidelines by the civil aviation ministry, following which a buyer will be selected. Transfer of control to the buyer to be effected by June-end.
As the WEF summit draws to a close on Saturday, a few big names from India including Mukesh Ambani and Anand Mahindra were missing in action while Pakistan Prime Minister Nawaz Sharif and Jordan's King Abdullah II were among global leaders who cancelled their trips at the last moment.
The spokesperson in the Ministry of External Affairs said diplomats deal with a variety of issues and it was normal for them to collect information, assess them and send report to the government back home.
Likely to rake up the issue of open offer exemption.
After the August 10 deadline, South American conglomerate Synergy Group Corp reportedly evinced interest in the airline, forcing the RP to seek lenders' nod to extend the deadline to August 31. The Synergy Group owns a majority in Colombian carrier Avianca Holdings, which has a codeshare partnership with the state-run Air India.
Air India, which is set to fly to Moscow from early next month, is exploring CIS destinations among the new places that it wants to expand its global operations to, an airline official said.
The April 2 Supreme Court order quashing the February 12, 2018 RBI circular (which ended all debt recast plans even on a one-day default) put paid to the resolution plan as banks were left with no leeway to restructure the loan and pay the promised Rs 1,500 crore interim funds.
The proposal will now be considered by the Cabinet Committee on Economic Affairs.
The IRP has admitted 33 claims from banks worth Rs 8,462 crore, and is verifying Rs 15,044-crore claims from operational creditors and staff.
Changes being driven by Etihad, says a source, after a V-P quits
Domestic airlines witnessed 10 per cent rise in sales in 2014.
Air India, SpiceJet, IndiGo and AirAsia India ready to fill in the gap.
Minority investors of SpiceJet might be feeling cold-shouldered.
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The open offer for minority shareholders would need to be made even if the 'control' has been acquired without crossing the threshold shareholding limit (25 per cent), Sebi Chairman U K Sinha said.
Signs of financial stress were visible when the airline reported a loss of Rs 10.40 billion.
A senior first officer with Jet Airways shares her plight.
Indian bankers are fearful that going out of their way to save Jet could lead to subsequent harassment from investigative agencies.
The deal, involving Abu Dhabi carrier Etihad's purchase of 24 per cent stake in Naresh Goyal-led Jet Airways, was approved last month by the Competition Commission of India.
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