Stake sale in troubled Jet Airways could be delayed – newspaper

NEW DELHI (Reuters) – Distressed Indian lenders at Jet Airways Ltd may have to wait a little longer to sell a stake in the carrier because they need more clarity from the country's central bank, reported Sunday the newspaper Business Standard.

Jet, the oldest private carrier in India, has a debt of more than $ 1 billion, compounding its financial difficulties and forcing it to block most of its fleet.

After Jet failed to convince potential investors, including its largest shareholder, Etihad Airways, to bail it out, Indian banks decided to take a majority stake in the carrier.

Last month, Jet lenders, led by the State Bank of India, agreed to bail out the airline as part of a complex deal involving a majority stake of banks, while seeking an investor to revive the situation. of the society.

Jet lenders announced on Thursday that they plan to ask potential investors to express their interest in the airline from April 6 and that all submissions from interested parties should be completed by April 9.

But this process could be delayed because the Reserve Bank of India has not yet discussed the issue of converting debt into capital, the newspaper quoted a source as saying.

In February, Jet stated that its shareholders had approved a plan to convert its existing debt into equity.

(Mayank Bhardwaj report, edited by Kim Coghill)