INSUBCONTINENT EXCLUSIVE:
valuable assets, including airport slots, of the grounded airline, banking sources said.As they wait for completion of the bidding process
for stake sale, the domestic lenders, led by State Bank of India (SBI), are looking at options to raise funds from available assets of the
carrier, which has operated in the Indian market for nearly 26 years.Cash-starved Jet Airways on Wednesday suspended operations temporarily
-- a decision that has also left more than 20,000 employees as well as various other stakeholders in the lurch.The sources said the lenders
are actively considering proposals, including from Air India, for utilising the planes owned by Jet Airways
aircraft, including 10 wide-body Boeing 777-300 ER aircraft, while the rest of the planes were on lease
The full-service carrier had more than 120 planes in its fleet last year.Earlier this week, Air India chairman and managing director Ashwani
Lohani wrote to SBI chairman Rajnish Kumar saying that the airline is looking at leasing five of Jet Airways' Boeing 777s and operate them
on London, Dubai and Singapore routes.As concerns mount over the future course of Jet Airways, the sources said lenders have been proactive
and cannot be blamed for the current situation at the airlines."They (lenders) have been actively engaging with the company for almost nine
months ever since the airlines started incurring cash losses and have been urging the management to come forward with a definite plan for
resolution.""Unfortunately, the management and the promoter delayed in taking a decision leading to the present situation
step down came as late as March 25 and he signed a binding agreement to facilitate stake sale only in the second week of April
By then, the airline's operations had been severely affected, the source added.The source also said that banks have now put in place a
transparent bidding process for a new investor to take over the airline and the outcome would be known by May 10.According to the sources,
lenders have also reached out to relevant authorities to protect valuable assets for the airline, such as airport slots, as it would improve
the chances of a better revival
The best revival prospect would be to have a new investor who brings in sufficient cash and also has a definite plan going forward, they
added.It is also learnt that while the promoter has stepped down and entered into a binding agreement, there has been no change in
complexion of the board of the airline due to technical reasons."The conversion of debt into equity was conceived as a way to allow a new
Also, while the lenders have nominated AK Purwar and Kapil Kaul to the board of Jet Airways consequent upon stepping down of the promoters,
this is yet to take effect on account of some technical reasons," another source said.The banks have been working with the same executive
management team who have been in charge of running the company even after stepping down of the promoter, the source added.On Thursday,
lenders said they were "reasonably hopeful" that the bidding process for the airline will end successfully."The lenders after due
deliberations decided that the best way forward for the survival of Jet Airways is to get the binding bids from potential investors who have
expressed EOI (Expression of Interest) and have been issued bid documents on April 16," they had said in a statement.A consortium of seven
domestic lenders led by State Bank of India (SBI) has invited bids from potential suitors
Their debt exposure to the airline is more than Rs 8,500 crore."Lenders are reasonably hopeful that the bid process is likely to be
successful in determining the fair value of the enterprise in a transparent manner," it said.Banks had rejected the emergency funding
request of Jet Airways that forced it to ground operations.Get the latest election news, live updates and election schedule for Lok Sabha
Elections 2019 on TheIndianSubcontinent.com/elections
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