According to the clarification, lenders have allowed restructuring of debt and infusion of funds by way of loans or acquisition of up to 75 percent stake in the company. Deadline for EOI extended to April 12.
SBI Capital Markets, a 100 percent subsidiary of State Bank of India (SBI), the lead consortium lender to Jet Airways has said it has received some expression of interest (EoIs) and has extended the deadline in an attempt to clear the way for more suitors.
The deadline, which was to get over on April 10, for submission of EoI has also been extended to April 12, by 6 pm. The hard copies may be submitted by April 16.
According to the clarification, lenders have allowed restructuring of debt and infusion of funds by way of loans or acquisition of up to 75 percent stake in the company.
While now the emphasis is on restructuring, the earlier announced guideline mandated the buyer to 'settle' loan obligations of Jet Airways. The troubled airline has debt of over Rs 8,000 crore.
"The bidders can now propose how they want to structure the deal," said an executive from the industry. "There is possibility of more investors coming in, and gives more freedom to bidders to participate, in case there was any hesitation," added the executive.
The clarification also states that, in case of a bidding consortium, each of the members are required to provide the solvency certificate.
Etihad Airways, which owns 24 percent stake in Jet, is said to among the favourites now to invest further in Jet Airways. Also, private equity majors and NIIF, India's sovereign fund, may join the fray.
Meanwhile, in a sign of deteriorating condition of the airline, IOC stopped fuel supply to Jet Airways across India, from Wednesday evening.
While the supply was resumed a few hours later, it did have an impact on flights. Already, Jet is now flying just 26 of its 119 aircraft, rest of them being grounded.
According to data from industry regulator DGCA, nearly 30 of Jet Airways aircraft have either been de-registered or are awaiting it. Once an aircraft is de-registered from a regulator, it can be taken outside the country and be leased to another airline. Of Jet Airways 119 aircraft, only 17 are owned by it and rest are leased.
On Tuesday, Jet Airways pilots union had sent a legal notice to CEO Vinay Dube, asking for salary dues to be cleared by April 14. Otherwise, the union said it be seek out means to settle dues.
The airline has deferred salary payments to all its employees in March.
Given the condition, it is now a fight against time for its lenders to get a new owner and bring in liquidity.
Lenders led by the SBI had earlier said that if the bidding didn't go through as planned, other options would be looked at. Those could include bankruptcy proceedings against the airline.
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