Lenders to reach final resolution in a week

Mumbai: A consortium of lenders led by the State Bank of India (SBI) should reach a final resolution plan to rescue embattled Jet Airways in the next one week, an SBI official said on Friday.

Grappling with a debt of more than $1 billion, Jet has delayed payments to banks, lessors, vendors and staff.

All the lenders are working toward a resolution with the “desire that this airline keeps running”, the official said, declining to be named as the matter was sensitive.

Jet, in February, said its board had approved a rescue deal which will make its lenders its largest shareholders as they convert a part of debt into equity and fix a near Rs 8,500 crore ($1.2 billion) funding gap.

But the plan, which also includes an equity infusion, debt recast and the sale and lease back of aircraft, needs approvals from many stakeholders.