MUMBAI :A group of minority share holders of Jet Airways (India) Ltd., have sought permission from SBI Capital Markets Limited (SBI Caps), which is running the bidding process for the cash-strapped airline, to present a proposal to lenders that would revive the airline.
In a letter dated 25 April and addressed to SBI Caps, Sankaran Raghunathan, representing minority shareholders and frequent flyers of Jet Airways, said that Jet Airways' lenders should not entertain any proposal or bid from any party that seek haircut from banks on the debt obligations of the airline, as this would result in a loss for the banks.
A copy of the letter has been reviewed by Mint.
"We would like to present a proposal to your clients that would revive Jet Airways while at the time same time arrange for a repayment of the loans owed to the nine banks," Raghunathan said in the letter.
"This proposal does not seek any discount or 'haircut' in the settlement of dues to the bank. In the light of this request, your Clients are put on notice not to settle the dues at a discount and incur losses to themselves and thus to the shareholders," Raghunathan added.
Jet Airways, which was until recently India’s second-largest airline, suspended flights last week under the weight of high debt and a severe cash crunch.
Jet Airways owes the 11 banks, including nine Indian banks, about ₹11,261 crore.
SBI, which is heading the lenders consortium for Jet Airways, has appointed SBI Caps to run the bidding process for the airline, which is expected to close by 10 May.
Potential buyers were allowed to bid for as much as 75% of the carrier.
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