NEW DELHI: As uncertainty looms large on the fate of Jet Airways, the group of lenders led by led by State Bank of India (SBI), met financial services secretary Rajeev Kumar, amid reports of temporary shutdown.
According to Sunil Mehta, chief executive of Punjab National Bank, the board and lenders are working on the revival plan of the debt-ridden airplane including the infusion of emergency funding, however no plans have been finalized yet.
PNB is a part of the consortium of lenders that is carrying out debt resolution at the beleaguered airline.
According to the sources, while the board is asking of an immediate infusion of Rs 1,000 crore, the lenders are demanding some collateral for the infusion of funds. More clarity is likely by late evening.
After reports of a temporary shutdown airline's share price nosedived by as much as 19 per cent.
Jet Airways' lenders have carried out a bidding process to sell up to 75% stake in the airline. On Monday, SBI said the bidding process was being vetted by a legal team and prospective bidders will be shortlisted by SBI CAPS shortly.
"The proposed equity conversion by banks, if any, will be undertaken as a transitory mechanism to facilitate the bidding-cum-sale process. Necessary support to facilitate the process is being extended by the banks in the consortium," an SBI spokesperson said.
Etihad Airways PJSC, India's National Investment and Infrastructure Fund (NIIF) and private equity firms TPG Capital and Indigo Partners were shortlisted on Monday to place binding bids for Jet Airways.