Jet Airways to seek shareholders’ nod to convert debt into equity

  • In a clear indication that lenders are set to get a larger say in the running of debt-laden Jet Airways, the airline on Monday said it would seek shareholders’ approval to convert existing debt into equity.
  • It has also proposed to increase the authorised share capital of the company from ₹200 crore to ₹2,200 crore, a move aimed at issuing fresh shares to the lenders.
  • Under the proposal, the lenders will also get to appoint one or more persons as nominee directors or observers on the board of the company.
  • Jet is also seeking approval to raise further loans within the overall existing borrowing limit of ₹25,000 crore, and provide the lenders with the right to convert such loans into shares of the company.

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