Lenders to Jet Airways (India) Ltd have invited bids for a stake sale of up to 75% in the struggling carrier and for settlement of all its credit obligations.
State Bank of India (SBI), which leads a consortium of domestic lenders to Jet Airways, is looking for a "change in control and management" of the carrier, according to a public notice.
The lenders have appointed SBI Capital Markets Ltd as the adviser to help formulate and implement a resolution plan, including the bidding process to find an investor for the airline.
According to the bid offer document, the lenders have offered to sell a stake of at least 31.2% and up to 75% of the airline. Potential investors can submit expressions of interest starting today until 6 pm on April 10. The qualified bidders can submit their binding bids by April 30.
Jet Airways, which has a debt burden of Rs 8,000 crore, is under the management control of the SBI-led consortium of 26 lenders.
The board of Jet Airways had, on March 25, approved a plan where the lenders' consortium took control of the airline and agreed to infuse Rs 1,500 crore to help the carrier.
Besides, the carrier's founder Naresh Goyal as well as his wife Anita Goyal quit the board. The shareholding of the Goyal family has come down to 25% from 51% earlier.
Last week, the lenders said they would pursue a resolution plan for the carrier in a time-bound manner under the present legal and regulatory framework.
According to the bid documents, a a strategic investor should have a net worth of a minimum of Rs 1,000 crore in the last financial year or a minimum three years of experience in commercial aviation business.
A financial investor must have assets under management of at least Rs 2,000 crore in the immediate preceeding financial year or committed funds available for investment in Indian companies or Indian assets of Rs 1,000 crore.
"The lenders are cognizant that the outcome of efforts of the lenders will depend on the interest shown by the parties on [the] sale of [a] stake in the company," SBI said in a statement on behalf of all lenders. It added that while the lenders will make all efforts to sell the stake, other options may also be considered should these efforts not result in an acceptable outcome.