The proposed equity conversion by banks is a transitory mechanism to facilitate the bidding cum sale process, SBI said.
Lenders to Jet Airways said SBI Capital Markets, which has been given the mandate to carry out the stake sale process in the beleaguered airline, will soon shortlist prospective bidders.
The consortium of lenders, led by the State Bank of India (SBI), had invited the Expression of Interest (EoI) from participants between April 8 and April 10. The deadline was later extended to April 12 in order to encourage participation from more entities.
“The bid process for an orderly sale of equity in Jet Airways is currently being run by SBI Caps and is being vetted by the legal team. The prospective bidders will be shortlisted by SBI Caps shortly,” a spokesperson from SBI said in a statement on April 15.
In the stake sale, 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.
“The proposed equity conversion by banks, if any, will be undertaken as a transitory mechanism to facilitate the bidding cum sale process,” the statement said, adding that SBI is acting on behalf of the group of lenders as part of the Bank-led Resolution Process.
SBI also said necessary support to facilitate the process was being extended by the banks in the consortium. “Cooperation by and support from all the other stakeholders will be the key to the success of the process,” the country’s largest bank said.
Etihad Airways, which owns 24 percent stake in Jet and former chairman Naresh Goyal are said to be among those who have submitted their EoIs. Private equity majors and NIIF, India's sovereign fund, have also shown interest in buying shares in the troubled airline.
Earlier today, Jet Airways CEO Vinay Dube told employees the interim funding from the banks had not been forthcoming so far. The senior management will brief the airline’s board on April 16.
The banks, which had earlier promised Rs 1,500 crore in emergency funding, had transferred only about Rs 250 crore. The airline was operating just seven aircraft, out of 119, and had suspended its international operations from April 13. In the domestic market, it was operating less than 50 flights a day.