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Jet Airways employees in talks to raise $700 million to revive the airline

PW Bureau

The employee group has asked SBI Caps to provide them with more information in order to help them in the fundraising process

New Delhi: The group of Jet Airways employees, who have offered to “step-in” the bidding process when needed, have written a mail to SBI Caps saying that they are in talks with investors to raise $700 million that can be used to revive the beleaguered airline. “We would like to assure you that our resources are at your disposal if they can be of any help,” said the mail addressed to SBI Caps, which is overseeing the bidding process.

The mail sent last week was signed by representatives of Society for Welfare of Indian Pilots and JAMEWA (Jet Aircraft Maintenance Engineers Welfare Association).

Employees seek more info

The employee group has asked SBI Caps to provide them with more information in order to help them in the fundraising process. Among the details sought by them is the assets and valuation of Jet Airways, 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.

The other details that the employees have asked for 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?

The backdrop

The news comes just days after SBI Caps started reaching out to unsolicited bidders of Jet Airways to bring in equity. The move was necessitated after Etihad Airways was the only shortlisted bidder to have put in a bid. However, the Abu Dhabi-based airline has agreed to put in just as much equity as would be required to maintain the 24 percent stake it owns in Jet Airways.