New Delhi, Even as the much-needed funding remains elusive for Jet Airways, merchant banker SBI Caps has started the process for sale of the financially troubled carrier for lenders.
The SBI Caps’ legal team is working on the expressions of interest (EoIs) received from investors and bidders will be selected soon.
“The proposed equity conversion by banks, if any, will be undertaken as a transitory mechanism to facilitate the bidding-cum-sale process,” the State Bank of India (SBI) said in a statement on Monday.
The SBI Caps is acting on behalf of the group of lenders as part of the bank-led resolution process. Necessary support to facilitate the process is being extended by other banks in the consortium.
“Cooperation and support from all other stakeholders will be the key to the success of the process,” SBI said.
The airline, which has been expecting Rs 1,500 crore interim funding from lenders, has failed to get that despite several meetings. The latest meeting with lenders on Monday too remained inconclusive.
With delay in fund infusion, Jet’s operations have been shrinking. The airline’s fleet has shrunk to 7 aircraft from 119, a few months back.