The banks will issue a loan of 15 billion rupees ($218 million) to meet Jet's obligations and form an interim management committee to oversee operations, it added.
As part of the debt resolution plan, piloted by SBI, the carrier's founder and chairmanNaresh Goyal, his wife Anita Goyal and Etihad Airways' nominee director Kevin Knight are quitting the board. Its main lender State Bank of India reportedly agreed to infuse ₹15 billion into the private carrier to help it stay afloat.
"Immediate Funding support of up to Rs 1,500 crore by lenders by way of issue of appropriate debt instrument against security of its assets which will restore normalcy to Company's level of operations", it said.
Lenders to undertake a bidding process for its shares.
Naresh Goyal will cease to be the chairman of the company, Jet Airways said.
Jet Airways founder Naresh Goyal, wife step down from board
It also needs to pay months' worth of salaries to pilots and other senior employees.
As a result, the stake of promoter Goyal will come down to 25 percent from 50 percent, while Abu Dhabi's Etihad Airways, which had a 24 percent stake in the carrier, came down to 12 percent. "That is the best process", Srinivas said, in response to a query on whether Jet Airways qualified for bankruptcy proceedings.
Saying that the development was a wake-up call for Indian policymakers, SpiceJet chairman and managing director Ajay Singh said there was an urgent need to address structural challenges in the aviation sector.
In a recent letter sent to Prime Minister Narendra Modi, the National Aviators Guild (NAG) had raised concerns after the pilots' group of Jet Airways revealed that the airline is onthe "verge of collapse". This has all been possible because of the tireless, unrelenting efforts of each and every one of you, tight-knit members of our Jet Airways family, setting guest-service benchmarks to the envy of our competitors, helping us collectively realise our dream of our Jet Airways emerging as a global gold standard of warm Indian hospitality", Goyal says, adding "Looking back I would not want to change a thing.
Goyal and his wife Anita will step down from the board of the ailing airline following reduction in their stake to 25 percent as per the resolution plan formulated by SBI-led domestic lenders.
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