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SBI extends deadline for Jet bids, tweaks stake-sale proposal
Photo Credit: Reuters

The State Bank of India (SBI) has extended by two more days the bidding process for the stake sale in financially-ailing Jet Airways, allowing potential investors to bid till Friday, a person in the know told VCCircle.

This comes two days after the bank, which is the lenders' consortium leader, kick-started the process to sell up to 75% stake in the struggling carrier for settlement of all its credit obligations.

"We have received interest from a few bidders and, based on their queries, have modified the proposal, which originally was to submit an expression of interest (EoI) for ownership and settlement of obligations of the company,” the person from the consortium said, adding, “Now, they can not only buy stake but also infuse money or restructure." Moreover, potential buyers now must provide solvency certificates before they submit their interest. 

According to the bid offer notice on 8 April (Monday), the lenders have offered to sell at least 31.2% and at the most 75% stake of the airline.

Jet, which has a debt burden of Rs 8,000 crore, is under management control of the SBI-led consortium of 26 lenders.

The board of Jet had, on 25 March, approved a plan according to which the lenders' consortium takes control of the airline and infuses Rs 1,500 crore to help the carrier.

On 4 April, SBI put out a statement on behalf of the lenders suggesting its plans for a stake sale in Jet and, in the meantime, urged lenders to consider other options in case the efforts do not bear fruit.

The airline has said it also owes money to banks, pilots and suppliers.

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