The public sector lender State Bank of India (SBI), will consider the 7,000-crore investment proposal made by debt-ridden Jet Airways’ employees, after the current stake sale process is complete and if there are no buyers. The last date of submitting financial bids is May 10.
In a meeting with senior executives representing a section of grounded Jet Airways employees, the bank took a view over the proposal of allowing the airline management to take over the company, with at least 3,000 crore expected from outside investors for the bid.
“The SBI Caps team stated that lenders may review the status and consider any other options or proposals, including our employee ownership proposal, after conclusion of the bidding, and if the said process does not provide a satisfactory solution,” said employee representatives.
The bidding process for debt-laden Jet Airways is being managed by SBI Caps team on behalf of the State Bank of India-led lenders’ consortium.
However, the deadline for submitting the initial bids has already crossed, the shortlisted bids are expected to be finalised by next week.
Jet Airways suspended its entire operation temporarily on April 17 due to lack of funds. It owes its employees 400 crore in salary and its lenders 11,261 crore.