Jet Air - Can they cheer equity holders?

Jet Airways has seen new promoter, as UK based Kalrock Capital and UAE based Murarilal Jalan combine, having approved on 17th Oct 2020, with revival plan submitted by them with NCLT on 5th November, 2020, now waiting to get approved.

Present equity of Jet Air is at Rs. 114 crore, in the form of 11.36 cr shares of Rs. 10 each. Of this, 25% is held by the old Promoter, Naresh Goyal, while this will get cancelled and exinguished. PNB is holding 27% stake and Etihad Air is holding 24% stake as Non promoter. Both being mighty ones, having pumped in huge money in the company earlier, would like to have better stake in restructured Jet Air.

In earlier cases of IBC, we saw cancellation of up to 95% of non promoter equity. As new promoter expressed desire of having 90% stake, it may be likely that they will setlle with an eventual stake of 85%, Hence, existing shareholder will see existing 100 shares getting reduced to 15 shares. New promoter may get 7.24 crore shares allotted at Rs. 10 per share, with eventual paid up equity at Rs. 85.20 crore.  This paid up equity will be seen quite low, with Spicejet having equity of Rs. 600 cr and Indigo of Rs. 385 cr, both with FV of Rs. 10. Jet Air now has 12 owned Aircrafts, of which, 2 are leased.

So, with this expected lower extinguishment of equity, will that give shareholders a reason to cheer?