Lenders to Jet Airways will recover ₹1,183 crore over a five-year period, according to the debt resolution plan submitted by the Kalrock-Jalan combine.
Of this, the first tranche, in cash, will be of ₹280 crore after 180 days of the new promoters taking ownership of the beleaguered airline. And, a second cash tranche of ₹195 crore will follow in 730 days. The balance will be paid through a mix of cash, asset sale and from the cash flows generated by the airline every year. In effect, the new owners will acquire controlling stake in Jet for a cash consideration ₹475 crore.
Once the plan is approved by the NCLT, Kalrock-Jalan will own 89.79 per cent of Jet Airways. Banks will hold 9.5 per cent. The public shareholding will be reduced from 25 per cent to 0.21 per cent and the workmen and employees get 0.50 per cent. Etihad Airways will exit the company without any compensation.
The consortium proposes to buyout Etihad’s 50.1 per cent stake in Jet Privilege Private Limited (JPPL) for ₹25 crore. The banks will also get a 7.5 per cent stake in JPPL, now called Intermiles. The new owners will liquidate 100 per cent of Jet Lite and give the proceeds to the lenders.
Financial creditors will get ₹1,010 crore over the next five years against a claim of ₹7,453 crore…