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Which way is the Jet crisis headed now? Here’s a rundown

PW Bureau

In bids that closed last week, Etihad offered to retain the 24% stake it already owns in the airline but stopped short of a comprehensive resolution plan

New Delhi: After failing to elicit interest from suitable bidders last week and cold response from Etihad Airways, Jet Airways lenders are now back to square one. The consortium of lenders, led by the State Bank of India (SBI), is now set to begin a fresh search for a majority investor in the beleaguered airline.

According to sources aware of the development, the lenders took the call to initiate a fresh search process after a meeting on Monday. In bids that closed last week, Etihad Airways had offered to retain the 24 percent stake it already owns in the airline but stopped short of proposing any comprehensive resolution plan.

What has Etihad offered?

The Abu Dhabi-based airline has offered just enough equity to maintain its 24 percent stake in the beleaguered airline. “Etihad re-emphasises that it cannot be expected to be the sole investor, and that, among other requirements, additional suitable investors would need to provide the majority of Jet Airways’ required recapitalisation,” an Etihad spokesperson said.

This means that Jet’s lenders will still have to look for a majority stake buyer who will be responsible for infusing the bulk of the equity required to get the airline to fly again.

Jet CFO resigns

Meanwhile, Jet Airways Chief Financial Officer (CFO) and deputy chief executive officer (deputy CEO) Amit Agarwal resigned from his positions at the airline, Jet said in a statement on Tuesday. The airline also said that Agarwal resigned due to personal reasons and his resignation took effect on Monday. This is the fourth senior-level employee to have resigned from his post since last month.