Jet Airways India Ltd is working towards a resolution plan where it seeks its shareholder’s approval to allow banks and financial institutions to have their loans converted into shares and provide them with a say in the operations.
According to Jet Airways regulatory filing, the airline is seeking shareholder nod through a special resolution to increase its authorised share capital from Rs 200 crores to Rs 2,200 crores. The move is expected to create more room for the issuance of fresh shares to lenders.
According to the company’s statement, the airliner is eyeing on the approval from shareholders to increase the limit of authorised share capital from 18 crores equity shares to 68 crores and 2 crores preference shares crore to 152 crores.
On December 31st, the airline defaulted on bank payments due to an ongoing cash crunch. It is reported that the airliner is under the Lodebt of over Rs 10,900 crores and is required to deposit Rs 1,700 crores by the end of the current fiscal. The resolution will be discussed in the extraordinary general meeting which is scheduled to take place on February  21, 2019, in Mumbai.
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