These bidders submitted their offers for Jet Airways and the same will now be assessed by the lenders for viability and seriousness to revive the airline, which ended its operations on April 17
Etihad Airways, the second largest shareholder of Jet Airways, will retain the 24 percent stake in the beleaguered airline and will further pump in Rs 1,700 crore
"Etihad re-emphasises that it cannot be expected to be the sole investor, and that, amongst other requirements, additional suitable investors would need to provide the majority of Jet Airways’ required recapitalisation," an Etihad spokesperson said.
UAE-based carrier has been working with key stakeholders in India for the past 15 months to help find a solution to ensure Jet's return as a viable and competitive airline.
Its founder Chairman Sanjay Viswanathan clarified that Adi Partners is not in touch with Jet Airways founder Naresh Goyal or British entrepreneur Jason Unsworth as claimed
Bankers are concerned if the airline can maintain the current fleet to stay operational until new investors are found
Senior Etihad officials met executives of SBI, the lead lender of Jet.
Tony Douglas, CEO of Etihad, met State Bank of India (SBI) Chairman Rajnish Kumar on March 18 asking lenders to buy Etihad's entire 24 percent stake, should it decide to exit
Sources say Tata Sons have been approached to rescue Jet Airways
In absence of a solid plan B, and lack of emergency funding, Jet Airways may be forced to ground more flights. Banks fear the account may turn bad by March-end.
Douglas, in an interview to IATA earlier this month, had said that Etihad doesn't want to continue with its equity alliance strategy going ahead
This is the second instalment of a $140-million loan that Jet Airways had taken in 2014, for which Etihad Airways was guarantor
The Abu Dhabi state-owned airline blamed challenging market conditions including higher fuel prices for a $1.28 billion loss in 2018, narrower than the $1.58 billion it lost in 2017.
Even after the resolution deal, the founder Chairman will continue to have a huge influence over the airline
Jet Airways, a full-service airline, has been grappling with acute financial crunch that has also forced it to ground many planes as well as delay payment of salaries and loan repayments.
The meeting, to be held at SBI's office in Mumbai, assumes significance amid differences persisting between Goyal, the lenders and Etihad, which has 24 percent stake in Jet Airways.
Despite being hit hard, Jet Airways managed to improve on certain metrics such as network load factor that rose to a high of 87 percent through December 2018 and January 2019.
Abu Dhabi-based Etihad, which currently owns 24 percent in the full service carrier, is a strategic partner and is expected to pump in around Rs 1,400 crore.
Etihad said that it will take delivery of five Airbus A350-1000, 26 Airbus A321neos and six Boeing 777-9 aircraft "over the coming years."
JetPrivilege is currently managed by Jet Privilege Private Limited (JPPL), a subsidiary company in which Etihad owns a majority share
The valuation is central to making a success out of the deal, and injecting liquidity into the struggling airline.
The Abu Dhabi-based airline had told Jet Airways's lenders last week that it would buy the airline's shares at Rs 150 apiece, which did not sit well with Naresh Goyal
That Jet Airways needs funds and Etihad Airways appears to be a lead contender is evident but Etihad's tough demands may leave little on the table for minority shareholders
Jet said on Wednesday a resolution plan, currently being discussed with stakeholders, contemplates options on the debt-equity mix, proportion of equity infusion by stakeholders and change in the airline's board.
Jet Airways failed to pay dues in December 2018 and banks are planning to ask the founder to reduce his stake in the carrier.