Lenders of debt-laden Jet Air offer to sell up to 75% stake

Jet Airways India’s lenders invited initial bids to buy as much as 75% of the debt-laden carrier, starting a process that will determine the future of India’s oldest surviving private airline. Potential buyers must submit their interest by April 10, State Bank of India, the lead creditor, said in a document Monday. A strategic bidder should have a net worth of at least 10b rupees ($144m) in the preceding financial year, or at least three years of experience in the airline business. The airline is credited with successfully breaking the monopoly of state-run Air India and was once India’s second-biggest carrier, but its fleet has dwindled to 26 planes from 124 as recently as January. Accumulated losses in nine of the past 11 years have caused Jet Airways to delay payments to banks, lessors and employees, while its founder Naresh Goyal was forced to cede control of the carrier. Jet Airways, part-owned by Abu Dhabi’s Etihad, needs 85b rupees to get back on its feet after a fare war by budget airlines wiped out profits and it racked up debt of more than $1b. Consortiums submitting bids should have no more than three members, with each holding a share of no less than 15%, according to Monday’s document. After qualified bidders are selected, they will be provided access to the company’s data and the bid document. Lenders led by State Bank of India said last week that “other options” may be considered if efforts for the stake sale “don’t produce the desired result,” without elaborating on what the options could entail.<br/>