Jet Airways revival plan: Lenders invite bids for stake sale in airline

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Updated: April 8, 2019 6:58:03 AM

Under the debt resolution plan approved by the Jet Airways board on March 25, lenders have taken a majority stake in the airline and are set to infuse Rs 1,500-crore funds.

Jet Airways, Jet Airways stake sale, Jet Airways EoIs, expressions of interest, SBI, Naresh Goyal, Revival plan: Lenders invite bids for stake sale in Jet Airways

The State Bank of India-led consortium on Sunday invited expressions of interest (EoIs) from the likely bidders for control and management of  the stressed Jet Airways. Interested bidders are supposed to submit bids starting April 8 and the last date will be April 10. The lenders, who now control the airline under a debt-recast plan, had last Thursday said the bid for the stake sale would be issued on April 6 and end on April 9. Now, there has been a slight delay in that schedule.
SBI is the lead lender to Jet, which has a debt burden of around Rs 8,000 crore.

Under the debt resolution plan approved by the Jet Airways board on March 25, lenders have taken a majority stake in the airline and are set to infuse Rs 1,500-crore funds. The carrier’s founder and promoter Naresh Goyal, as well as his wife Anita Goyal, have quit the board. The shareholding of Goyal has come down to 25% from 51% earlier.

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Acute financial crunch has forced the airline to ground aircraft, cancel flights and delay payment of salaries, including to pilots. However, uncertainty still prevails with regard to the immediate funding of `1,500 crore, which the airline needs badly. The lenders did not say anything on that front on last Thursday and even on Sunday, there was no word on it.

In fact, a statement issued by SBI on behalf of the lenders last Thursday did not rule out looking at other options should the current one not work out.
“Whilst all efforts will be made for the stake sale by the lenders, other options may be considered by the lenders should these efforts not result in an acceptable outcome,” the statement had said. On March 25, the lenders had said the new investor will be on board by May 31.

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