State Bank of India will consider the ₹7,000-crore investment proposal made by employees of Jet Airways only if it does not receive an acceptable offer from any of the four entities that have been short-listed to place binding bids.

In a meeting with employee representatives on Thursday, the bank took the view that the proposal to allow the airline’s management to take over the company can be considered after May 10, the last date for the short-listed players to place a binding bid.

“It was a preliminary discussion. The employees have been told to discuss with the management and come up with a comprehensive plan because currently the bid process is going on and we cannot be unfair to the bidders who have qualified,” said a source aware of the development.

Last week, the employees had put forth a proposal to SBI under which they had suggested that Jet Airways be taken over by a consortium of employees and external investors.

On April 17, the airline announced a temporary shutdown due to lack of funds. It owes its lenders ₹11,261 core, and its employees ₹400 crore in salary dues for 2-4 months.

US EXIM Bank pay-off plan

Meanwhile, banks are understood to be moving to strengthen their collateral so that their chances of recovery are better in case recovery proceedings are initiated against the airline.

Domestic lenders are considering paying off the US EXIM Bank ₹400 crore to get first charge of Jet Airways’ five aircraft.

“The plan is that the consortium of banks will take over US EXIM’s exposure, which is only about ₹400 crore. So, the security of five aircraft will be available, which will be more than ₹1,500 crore,” said a senior banker aware of the developments.

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