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Turnaround Plan for Debt-laden Jet Airways, Ola in talks to invest in Myra Medicines, Amazon Begins Testing for its Payments Platform in India et al.

Professor of Financial Economics and Part-time Value Investor, Transfin.
Jan 9, 2019 3:17 PM 3 min read
Editorial

Lenders propose $900m turnaround plan for debt-laden Jet Airways. Ola in talks to invest in Myra Medicines. Amazon begins testing for its payments platform in India.

 

Now to Today's Top Business News Stories in Our End Of Day Wrap Up:

Turnaround Plan for Debt-laden Jet Airways,  Ola in talks to invest in Myra Medicines,  Amazon Begins Testing for its Payments Platform in India et al.

 

AVIATION

Lenders propose $900m turnaround plan for debt-laden Jet Airways.
 
The What: As per the plan proposed by lead creditor SBI:

 

  • Promoter Naresh Goyal and shareholder Etihad Airways are likely to infuse $450m together in the airline
  • Indian lenders to restructure $450m of the debt 

 

Zoom Out: The plan is expected to be finalized by the end of January - before the 180-day period under the RBI’s 12 February circular which pushed for a timely resolution of stressed assets in the economy.
 

Perspective: If approved by all stakeholders, the implementation of the plan will result in a reduction of Chairman Naresh Goyal’s stake below the current 51%.

 

STARTUPS

Ola in talks to invest in Myra Medicines.
 

The What: As per a report by Entrackr, the deal is expected to close by the end of this month. A potential acquisition is also on the cards.
 

Myra Medicines: Backed by investors such as Matrix, Times Internet and Dream Incubation, Myra Medicines delivers medicines, baby care, dental and hygiene products across Bengaluru and Mumbai.
 

The Big Picture: This will be an addition to Ola’s strategic alliances undertaken in the recent past, expanding its push into delivery business across segments.

Zoom Out: The ride-hailing service had injected $100m in Vogo, a scooter-sharing startup last month. Further, it had invested $200m in food delivery service Foodpanda in December 2017.

 

SEARS

Chairman Eddie Lampert may get another chance to bid for Sears.

Perspective:  Chairman Eddie Lampert had earlier put forward a $4.4bn bid through his hedge fund ESL Investments to save the chain of department stores. However, as per a CNBC report, Sears Holdings had planned to reject Lampert's bid because it did not cover the fees and vendor payments that Sears owes. 

 

Last-minute: If Lampert is able to extend a $120m deposit by Wednesday, he will be allowed to participate in the bankruptcy auction scheduled for next Tuesday.



Click here to read a quick summary of the rather dismal tale of the 126-year-old American company.

 

UPI

Amazon begins testing for its payments platform in India.
 

The What: As per an Economic Times report, the tech giant has begun testing its native Unified Payments Interface in India with a closed user group. Amazon is working with private sector lender Axis Bank on the product.
 

Zoom Out: Amazon’s plan to enter the payments space had earlier hit a regulatory hurdle with RBI mandating that all payments-related data should be stored in India only.
 

Other Stuff: With the world increasingly growing digital, here’s an interesting article on how Chinese companies are planning a global fintech coup, but face a fundamental hurdle in India which has rolled out the UPI open architecture which obviates the need for a mobile wallet, connecting directly to a user’s bank account.

Turnaround Plan for Debt-laden Jet Airways,  Ola in talks to invest in Myra Medicines,  Amazon Begins Testing for its Payments Platform in India et al.

HEALTH

Govt issues guidelines to ensure smooth implementation of Ayushman Bharat.

The What: The guidelines seek to improve the supply of quality healthcare services to the general public.

Up Close: As per the guidelines, under:
 

  • Model I, a doctor owned hospital can have 30 to 50 beds
  • Model II a doctor manager partnership-multispecialty facility can have 100 beds
  • Model III, multispecialty hospital can have 100 beds or more


Zoom Out: The Pradhan Mantri Jan Arogya Yojana (PMJAY) was launched on September 23, 2018 to provide hospitalisation cover of up to INR5L per family every year to over 10 crore poor and the deprived families.
 

Digital Health: Dubbed the largest government healthcare program in the world, fundamental to ensuring the successful implementation of the scheme is building a strong capability in digital health. This would combine healthcare delivery with digital tools enabling better management and dispensation of healthcare services.

 

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