Jet Airways crisis: Etihad Airways submits binding bid as submission deadline ends today

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Updated: May 10, 2019 6:30:11 PM

HDFC puts Jet Airways' office space for sale to recover Rs 414 crADI Partners, Atmosphere Air-led consortium and another consortium have submitted unsolicited bids for Jet Airways. Image: Reuters

The Middle Eastern carrier Etihad Airways, which owns a minority stake in Jet Airways, on Friday submitted binding bid for the beleaguered airline, as the window for submitting bids closed 6 pm today, CNBC TV18 reported citing unidentified sources. Only one bid has been received from the four shortlisted suitors so far, the report added. Etihad Airways, TPG Cap, NIIF and IndiGo Partners were the shortlisted suitors. The report also mentioned that three unsolicited bidders have submitted bids for Jet Airways.  ADI Partners, Atmosphere Air-led consortium and another consortium have also submitted unsolicited bids, CNBC TV18 reported.

The consortium of 26 lenders, led by State Bank of India (SBI) now owns 51 per cent in the cash-strapped airline. Today was the last day to submit financial bids.The lenders are offering 31.2-75 percent stake in the Jet Airways on a fully diluted basis. The debt-struck airline owns Rs 8,000 crore to the consortium of lenders. It was on April 17 that Jet Airways suspended all its operations, after failing to get fresh financing from the banks.

Also read: Glimmer of hope for Jet Airways: Two investors put in bids ahead of today evening deadline

Jet founder Naresh Goyal, who stepped down on March 25 as part of an agreement with lenders, had earlier partnered with Future Trend Capital to submit a bid for investing in the airline. However, the offer was rejected after the other bidders threatened to walk away.

Meanwhile, the pilot’s union of the airline recently approached the Supreme Court asking it to direct SBI to release interim funding to the airline.  Nearly, 22,000 employees of the airline have turned unemployed since the Jet Airways suspended its operations. The employees have not received salary for the past four months now.

The stock of Jet Airways closed the day at Rs 146, down 1.40, or 0.95 per cent on NSE.

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