Offering to ‘step in’ when needed in the Jet Airways bidding process, a group of airline’s employees in their mail to SBI Caps said they are in talks with investors to raise $700 million that will be used to revive the cash-strapped airline.
The mail, which was sent last week, was signed by representatives of JAMEWA (Jet Aircraft Maintenance Engineers Welfare Association) and Society for Welfare of Indian Pilots.
“We would like to assure you that our resources are at your disposal, if they can be of any help,” said the letter to SBI Caps, which is overseeing the bidding process.
The employees had earlier this month met officials of SBI Caps, to present their proposal.
SBI Caps is at present in talks with unsolicited bidders of Jet Airways to bring in equity. Earlier, Etihad Airways was the only shortlisted bidder to put in a proposal. But the Abu Dhabi-based airline wants to retain only a minority stake in the airline.
It has also committed to invest Rs 1,700 crore in Jet Airways. But that is not enough to plug the funding gap in the Indian airline, which owes more than Rs 8,000 crore to banks and many more to lenders, vendors and employees.
SBI Caps has reached out to unsolicited bidders including Mumbai-based Darwin Group and London’s AdiGro Aviation to bring in additional funds.
Sought more info
In their mail to SBI Cap, the employees have asked for information to help them in the fundraising process. They have sought details of Jet Airways’ assets and valuation, its debt level, a break-up of its expenses and the amount of equity that will come in if the employees bring in $700 million.
Other queries include: How much debt will be on the books post-haircut/restructuring after equity investment? What’s the total fund required to operate the company for the next 24 months? By investing $700 million whether the investor gets a stake in the loyalty programme as well?