On February 21, the airline's shareholders approved five enabling resolutions to convert its debt into equity
A consortium of banks, led by the SBI, has extended loans to Jet Airways, which is looking to rejig debt and raise funds
The plan will mean the lenders will have a bigger holding than any other shareholder.
PNB is part of the lenders' consortium, which is led by State Bank of India (SBI), that has given loans to Jet Airways.
Jet Airways is facing a cash crunch, leading to delayed salary disbursements and vendor payments
The airline has a debt of around Rs 7,600 crore, which includes Rs 1,700 crore of aircraft loan
Nine of Jet's planes have been grounded by lessors, versus the four it reported last month, with AerCap Holdings NV and BOC Aviation Ltd among those who have pulled out planes
The cash-strapped full-service airline is looking for funds and restructuring of debt
The airline has also seen its share price suffer as it navigated through several negotiations with its lenders and shareholders
On paper, the plan looks like it may work. Yet Jet shares, which have dropped 70 per cent over the past year, haven't reacted
Jet bailout should not allow equity holders too much leeway
Jet Airways has defaulted on loans that were due by December 31 and has delayed payments to staff and lessors
According to Jet Airways, the macro situation is turning in its favour both on the cost and yield fronts
Banks did not make money in previous debt-to-equity conversions
Government-owned infrastructure fund National Infrastructure Investment Fund is likely to buy a 19% stake for Rs 1,500 crore
Etihad Airways is likely to retain its 24% shareholding
Jet Airways board approves draft resolution plan primarily comprising infusion of funds, restructuring of debts and monetisation of assets
Jet Airways has piled on debt as low-cost carriers lured fliers away with their cheaper, on-time, no-frills flights
The Jet restructuring would mean three board seats going to Etihad as it may turn out to be the largest shareholder
Sebi stance comes at a time when the stakeholders concerned along with the lenders have informally sought the regulator's views on the possibility of a waiver