Lenders want Etihad, other bidders to make joint bid for Jet Airways
14 May 2019
The creditors consortium led by State Bank of India (SBI) that is looking to recover about Rs9,000 crore in loans from grounded Jet Airways is now trying to bring the lone bidder Ethihad and two other unsolicited bidders together to bid for the airline, say reports.
With Ethihad offering to invest up to Rs1,700 crore, lenders are in no mood to take up the offer. Instead they are trying to bring investors together and pool resources so that banks could recover their loans.
The creditors group is now reported to be in discussions with Ethihad and two other entities who had submitted unsolicited expressions of interest after the deadline for bidding had expired.
Etihad was the lone bidder to submit a formal offer before the deadline. But, since Ethihad submitted bid for only a minor stake in Jet Airways, bankers thought it prudent to bring together all bidders, including late comers to make an offer.
While the lenders did not give any details of the Etihad bid, sources said the Abu Dhabi-based airline is keen to stay on as a minority investor, that too if the lenders are willing to take a massive haircut on the Rs9,000-crore debt.
Jet Airways has a total debt of about Rs14,000 crore, including payments due to business creditors.
SBI Caps had earlier shortlisted four entities that have submitted expressions of interest, which include Etihad Airways, TPG Capital, Indigo Partners and NIIF. However, Etihad was the only bidder who submitted bid by 10 May.
At least two entities have submitted unsolicited bids, which lenders have now taken up for consideration.
Besides, the employees of Jet Airways and a UK-based entrepreneur have also offered to acquire the airline. But none of these plans lighten the bank’s money woes as they would still have to pump in working capital to help the company get back on its feet.