The Expression of Interest document issued by SBI, lead lender in the consortium, offered a stake from 31.2% to 75% of the company on a fully diluted basis.

Lenders invite Expression of Interest for Jet Airways up to 75 stake up for sale
Money Jet Crisis Monday, April 08, 2019 - 17:26

Lenders of the debt-ridden Jet Airways on Monday invited "Expression of Interest" for stake sale in the airline to recover their dues.

The document issued by the State Bank of India (SBI), lead lender in the consortium, offered a stake from 31.2 per cent to 75 per cent of the company on a fully diluted basis.

"...the Lenders, pursuant to the guidelines issued by the Reserve Bank of India, are in the process of formulation of a resolution plan for resolving stress in the company, inter alia, involving change in control and management of the company," the EOI document said.

The purpose of the EoI is to provide information about the company to enable interested parties to make assessment about the proposal prior to the submission of their bids.

The time period for submission of EoI has been fixed for April 10.

This comes after Jet Airways promoter and Chairman Naresh Goyal stepped down from the board of the airline and ceded majority control to the State Bank of India-led consortium on March 25.

Under the debt resolution plan, the lenders would inject up to Rs 1,500 crore working capital into the airline and convert their debt into equity, to revive the airline and sell it by June.

The airline owes over Rs 8,000 crore to lenders, led by the State Bank of India (SBI).

While the funds from lender are still awaited, Jet recently communicated to its pilots and staff that March salaries would be delayed as well. Salaries are pending since January.

Meanwhile, its fleet size has now fallen to 28 as lessors remain adamant on clearance of dues.

And despite the Supreme Court's decision to annul a February 12, 2018 Reserve Bank of India (RBI) circular on bad debts, which was seen as a major setback for the resolution process, lenders said they intend to pursue the bank-led resolution plan for the airline under the present legal and regulatory framework.





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