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Section of Jet staff seeks financial details to raise $700 mn

IANS  |  New Delhi 

A section of grounded Jet Airways' employees comprising members of unions have written to SBI Caps seeking asset and other financial details of the crisis-hit company for raising $700 million (Rs 4,917 crore) from a mix of domestic and foreign investors.

SBI Caps is the of and managing the stake sale process for the The (SBI) is the lead lender and currently in management control of the

"We would like to assure you that our resources are at your disposal if they can be of any help. Also, as understood by us during the meeting of 2nd May, we are actively working with potential Indian and foreign investors to secure equity based funding commitment of $700 million," Capt. P.P. Singh, Senior at Jet Airways, wrote to SBI Caps.

Sensing that the options to revive the grounded are fast running out, a group of employees had on April 29 proposed to bid for management control of the airline. They claimed to secure a funding of Rs 3,000 crore from outside investors.

The employee group comprises members of (SWIP) and (JAMEWA). It is being led by Singh.

The employee-investor consortium has asked SBI Caps to provide details about the level of debt post haircut by banks and restructuring. Among key financial details, Singh has asked as to how much stake investors will get after infusing $700 million and the fund requirements for running the airline for the next 24 months.

Facing a severe liquidity crisis, had suspended its operations on April 17 and remains grounded. The are trying to rope in an investor to resuscitate the airline and recover their money.

While lenders are vetting various proposals, most of the top including its CEO, have resigned from their respective positions citing personal reasons. Close on the heels of resignation by airline's Gaurang Shetty, Etihad nominee on the board resigned on May 16.

Abu Dhabi-based Etihad Airways, which holds 24 per cent stake in crisis-hit Jet Airways, is currently the only solicited bidder for a stake in the airline. But experts have found its bid unattractive for the lenders, given multiple riders attached to it.

Besides offering to invest just Rs 1,700 crore against the requirement of Rs 15,000 crore to revive the crisis-hit airline, Etihad, has in its proposal, put the onus of finding a on the lenders. The Gulf carrier also wants exemption from giving an open offer in case its stake goes beyond 26 per cent.

(Nirbhay Kumar can be contacted at nirbhay.k@ians.in)

--IANS

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, May 18 2019. 18:52 IST
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