India's Jet Airways recovery path remains shaky

(Updates debt number, adds details)

Feb 21 (Reuters) - India's Jet Airways Ltd has approved a rescue deal by the lenders of the carrier reeling under a net debt of 72.99 billion rupees ($1.02 billion), but doubts linger over whether the bailout would help it clear dues on time.

The resolution plan will make Jet's lenders its largest shareholders and fix a near 85 billion rupee funding gap.

Jet has been steadily losing market share to its rival and low-cost carrier IndiGo, which is owned by InterGlobe Aviation Ltd.

The airline has also seen its share price suffer as it navigated through several negotiations with its lenders and shareholders.

For an interactive graphic on the airline's market value, click

Jet takes the resolution plan to its shareholders on Thursday, where it will seek their approval to convert debt into 114 million shares.

Here are some major developments in Jet's story:

Aug 3 – Jet denies report that it cannot fly beyond 60 days, and
dismisses conjecture of stake sale
Aug 9 – Airline defers board meet for first-quarter results
Aug 11 – After State Bank of India chairman says Jet's
loan is on the bank's watch list, Jet says it is regular in
payment obligations to all banks
Aug 20 - Sources tell Reuters that private equity firm TPG
Capital is considering investing in Jet, but is not close to
finalising a deal
Aug 27 – Jet posts loss for the June-quarter, says it will
inject funds and cut costs by more than 20 billion rupees in two
Sept 6 – Jet says it paid salaries to 84 percent of its
employees after reports emerge that pilots warned
'non-cooperation' over salary default
Oct 4 – Rating agency ICRA downgrades
the company's long term loans and NCDs
Oct 18 – Report says Indian conglomerate Tata Group is in talks
to buy stake in Jet. Jet calls report "speculative"
Oct 30 - U.S.-based Delta Air Lines Inc expresses
interest to buy Jet stake from promoter Naresh Goyal and Etihad
Nov 5 – Report says Tata aims to buy the 51 percent stake in the
airline owned by Naresh Goyal, and Etihad Airways' 24 percent
stake, and merge Jet with Vistara
Nov 12 – Jet posts third straight quarterly loss
Nov 13 – Tata Sons begins due diligence to buy Jet, reports say
Nov 15 – Shares surge nearly 25 percent following reports that
the debt-laden airline was nearing a rescue deal with Tata Sons;
another report says the Indian government asked Tata to explore
buying Jet
Nov 16 – Tata Sons says discussions on Jet is preliminary and no
proposal has been made
Nov 22 - Independent director Ranjan Mathai resigns, citing
rising pressure from other commitments
Dec 3 - Jet says it will stop providing free meals to most
domestic economy class passengers from January
Dec 5 - Jet and Etihad Airways have been holding rescue talks
with Jet's bankers, sources tell Reuters
Dec 6 - Jet tells its pilot union it will clear all salary dues
by April, a source tells Reuters
Dec 7 - ICRA cuts
Jet rating yet again
Dec 14 - Goyal's penchant for control has come up as a major
obstacle as the airline tries to negotiate a rescue deal,
several people who have worked closely with him or known him
over the years tell Reuters
Jan 2, 2019 - The airline says it has delayed payment to a
consortium of Indian banks, led by SBI; ICRA cuts rating again
Jan 10 - Jet proposes to creditors that it will catch up with
debt payments in arrears by September, and from April will meet
debt payments as they come due, according to a document seen by
Jan 11 - Some aircraft lessors were prompted to explore taking
back aircraft from Jet, people familiar with the matter told
Reuters. Etihad is not "in any position to sink new equity into
Jet at this juncture", says a person familiar with Etihad's
Jan 14 - Report states Goyal is likely to step down from the
board and give up majority control
Jan 16 - TV channel reports that Etihad offered to buy Jet
shares at a 49 percent discount and immediately release $35
Jan 17 - Top creditor SBI says Jet's lenders are considering a
plan to resolve its debt issues, amid further reports that Goyal
is willing to invest 7 billion rupees in the airline and pledge
all his shares but wants to retain a 25 percent stake.
Jan 24 - India capital markets regulator says it has no "view"
on relaxing norms for a Jet bailout
Jan 25 - Etihad appoints Alvarez & Marsal to conduct due
diligence on Jet, sources tell Reuters
Jan 30 - Jet denies its aircraft had been grounded by GE Capital
Aviation Services
Feb 1 - Jet agrees to most conditions set by Etihad Airways for
a lifeline, a report says
Feb 8 - Airline grounds four aircraft after failing to make
payments to lessors
Feb 14 - Jet's board approves a rescue deal which will make its
lenders its largest shareholders and fix a near 85 billion rupee
funding gap
Feb 15 - Jet is seeking an $840 million bailout from
shareholders and a state-backed fund, Business Television India
Feb 21 - International lessors have grounded more Jet Airways
planes prior to potentially moving them out of India, as
scepticism builds whether a state-led bailout of the carrier can
clear their dues on time, sources tell Reuters
($1 = 71.2325 Indian rupees)

(Compiled by Arnab Paul and Chris Thomas in Bengaluru; Editing by Subhranshu Sahu and Rashmi Aich)

First Published: 2019-02-21 05:40:33
Updated 2019-02-21 14:33:09

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