As the counting of votes from the extraordinary general meeting held on February 21 goes on at Jet Airways, many of the airline's stakeholders, including pilots and investors, are keenly watching from the sidelines.
The airline had called for the EGM to put to vote its resolution plan, which includes allotment of 114 million shares to lenders and conversion of debt into equity.
Jet Airways has time till February 23 to announce the result.
Post the EGM result, the management is expected to make an announcement that will provide better clarity on how much debt will get converted into equity and if Etihad Airways will bring in more money.
The Abhu Dhabi-based airline currently holds 21 percent stake in Jet Airways and the same will reduce to 12 percent as the shareholding dilutes after the share allotment. That stake may go higher if Etihad Airways pumps in more money.
But it remains to be seen how much the airline eventually invests, as it is not keen to participate in an open offer, which will get triggered once the shareholding crosses 25 percent.
The banks, led by State Bank of India (SBI), are also expected to infuse some more liquidity into the airline, which has been forced to ground its aircraft, prune its network and delay salaries to its pilots. It has a debt of nearly Rs 8,000 crore and repayments of about Rs 1,700 crore due by March.
Also see: SBI, PNB may pump in Rs 500 crore in Jet Airways if other lenders agree
Pilots salaryThe Jet Airways management had promised to clear salary dues of its pilots by March.
Though the pilots were promised that almost half of the arrears will be cleared this month, sources told Moneycontrol that only 25 percent was paid.
"The dues now are 25 percent of the November salary and the whole of December and January salaries," an industry executive said, adding: "The pilots are waiting to hear from the management. They are hoping that a deal fructifies and the liquidity crunch is taken care of. Otherwise, there will be pressure on the pilot's union to take action."
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
