SBI invites bids for ailing Jet Airways

Mumbai/New Delhi, April 8 

State Bank of India (SBI) today invited bids from strategic and financial bidders for stake sale in ailing Jet Airways.

SBI, which is the lead lender of a consortium of domestic lenders that has extended loans to Jet Airways, is looking for “change in control and management” of the carrier, according to a public notice.

SBI Capital Markets would be assisting and advising the lenders on the bid process. The bids have to be submitted by April 10.

The lenders’ consortium has taken control of the airline under a debt recast plan.

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.

Besides, the carrier’s founder and promoter Naresh Goyal and his wife Anita Goyal quit the Board. The shareholding of Goyals has come down to 25% from 51% earlier.

As per the advertisement, the airline has availed various credit facilities aggregating over Rs 8,000 from a consortium of domestic lenders led by SBI. The company has subsequently come under stress and not been able to service its debt obligations in relation to the facilities.

Acute financial crunch has forced the airline to ground aircraft, cancel flights and payment of salaries. — PTI

Up to 75% stake on offer 

• The consortium has proposed to offer at least 3.54 crore shares of the airline comprising 31.2% of equity share capital of the company and up to a maximum of 8.51 crore shares comprising 75% on fully diluted basis subject to approval

• Bidders can be strategic and/or financial investors 

• In the event the bidder is a consortium, it should consist of not more than three members with shareholding of an individual member not being less than 15% and should also have a lead member