Jet Airways creditor State Bank of India is probable to own 15 percent of the airline if the cash-strapped carrier's plan for a debt-for-equity swap is accepted.
With debts of about $1.14 billion, Jet has been hit by violent opposition from other low-cost carriers, a weaker rupee, and high oil prices. It owes money to banks, pilots, vendors, and education, some of whom are allowing for taking back aircraft.
Jet would seek shareholder endorsement next month to change debt into equity, add to its share capital and allow lenders to propose a director on its plank to help decide its financial problems.
Its lenders, including SBI, might end up owning as much as 30 percent, while shareholder Etihad Airways can see its wager rise to more than 40 percent from 24 percent if it injects more equity in the Indian carrier, TV channels reported.
The airline's founder and Chairman Naresh Goyal are likely to see his wager cut to below 20 percent from 51 percent.
Jet, which wheels a sixth of India's booming aviation market, did not respond to request comment, while SBI and Etihad also did not reply to emails looking for an answer.
Indian banks in 2010 undertake a comparable debt for equity swap to try and save Kingfisher Airlines, founded by liquor baron Vijay Mallya and ended up owning almost a quarter of the airline, before behind out when it was ultimately beached.
Jet default on a debt payment to a conglomerate of Indian banks, led by SBI, this month, prompting a downgrade by rating agency ICRA. The airline has to make large debt repayments over the next few years, starting with about 17 billion rupees ($242 million) by the end of March, ICRA said on January 2.
Jet's lenders want to reclaim some planes and have compulsory the airline ground five aircraft, including its new fuel-efficient Boeing 737 MAX planes, foremost to flight cancellations.
"Information concerning the grounding of the Jet Airways' MAX aircraft and resultant cancellation is accurately incorrect," a Jet Airways spokesman said on Tuesday.
The jet was listed to add 11 737 MAX planes to its fleet by March 31, but has taken escape of only five and will not add more until a declaration plan is agreed.
