Punjab National Bank Managing Director Sunil Mehta said that a consortium of banks, which is led by SBI, is considering an interim funding of Rs 500 crores for the indebted Jet Airways (India) Ltd, however, a final decision is yet to be taken.
PNB which is part of the lenders’ consortium said that the bank has extended loans to the airline. Mehta in an interview said that the consortium is looking at the entire process and something is being worked out. He added, “Of course, (the) consortium is in favour (of interim funding). It is a going concern and we would like to preserve its (airline’s) value.”
According to Mehta, the State Bank of India has taken a lead on it and the entire plan is being worked out, adding that it would be too soon to announce the timings. He noted, “Rs 500 crore that you are talking about is the interim funding but banks are looking at the long-term resolution of the issues for which the plan is already in place for discussions.”
Mehta was responding regarding the extended interim funding to the flyer. In the previous week, on February 14, the board of Jet Airways approved a resolution plan wherein the banks would become the largest shareholders in the airline. As per the RBI norms, the banks will convert the airliner’s debt into 11.4 crore shares at a consideration of Re 1 apiece.
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