Jet employee group offers to invest $700 million

Our Bureau Mumbai | Updated on May 19, 2019 Published on May 19, 2019

A group of two employee unions along with a few top officials of Jet Airways have said that they were in discussions with investors to secure funding of $700 million. In a letter to SBI Caps, the employees group has sought clarity on how much equity they could get for the said amount.

The employees group had met SBI Caps on May 2, where they had a preliminary conversation but were told to wait because the formal bidding process was due on May 10. At that time they had proposed to take control by infusing ₹7,000 crore. Under a proposal submitted to SBI, the employees had said they plan to put up capital through stock options worth ₹4,000 crore and another ₹3,000 crore raised from external investors.

Their latest letter sought details related to assets, liabilities and how the lenders would use $700 million.

Loyalty programme stake

They also wanted to know if they would get a stake in the loyalty programme of Jet Airways. The loyalty programme is under a different company and is not part of the debt resolution process.

“ understood by us during the meeting of May 2, we are actively working with potential Indian and foreign investors to secure an equity based funding commitment of $700 million, the letter stated. “While we wish you success with the existing bidders, our consortium would be prepared to step in whenever necessary as per the terms of our current understanding,” it added.

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Published on May 19, 2019
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