Jet Airways owes 11 banks, including nine Indian banks, about ₹11,261 crore ($1.62 billion).
The interim funding is supposed to help Jet Airways keep at least some of its planes flying till the lenders find a buyer.
There is a strong possibility that Etihad, TPG Capital and NIIF may form a consortium to jointly bid for Jet Airways at a later stage.
Etihad is learnt to have asked SBI to buy its 24% stake in Jet for about Rs 400 crore. It had bought the stake in 2013 for $379 million, or about Rs 2,060 crore.
A new agreement envisages a “new investor” injecting between ₹1,600 crore and ₹1,900 crore for a stake of around 20% in the airline and the Goyal group’s stake in Jet Airways falling to 17.1%.
Mumbai airport, India’s second-largest in terms of passengers and flights, handled 48.5 million passengers in 2018.
The Jet Airways bailout plan approved earlier would allow domestic lenders, led by State Bank of India, to convert their loans into equity, making them the airline’s largest shareholders.
The decision to raise funds through rights issues comes after the domestic lenders decided to convert existing debt into 114 million shares at a consideration of ₹1 according to Reserve Bank of India (RBI) norms.
Jet Airways promoter Naresh Goyal has made a financial offer to SBI to retain control of the airline, even as Etihad Airways sought to oust him in exchange for much needed funds.
The plan could see Etihad Airways raise its stake from the current 24%, and Jet Airways’s promoter and founder Naresh Goyal cede control of the airline.