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Jet Airways bidders must submit individual solvency certificates

Jet Airways bidders must submit individual solvency certificates

New Delhi: Bidders in a consortium that bids for acquiring stake in cash-strapped Jet Airways have to furnish individual solvency certificates, according to SBI Capital Markets.

"While all soft copies of the EOIs (Expressions of Interest) are required to be submitted by the EOI due date, the hard copies may be submitted by April 14, 2019," it said in a set of clarifications issued regarding the bid document.

According to the EOI document issued on Monday, April 10 is the last date for submission of initial bids.

Jet Airways is grappling with acute financial crunch and the SBI-led consortium of domestic lenders are implementing a debt resolution plan. SBI Capital Markets has invited bids on behalf of the lenders.

"Bidders are required to provide the solvency certificate ... on their letterhead and certified by Managing Director/ Full Time Director / Chief Executive Officer of the bidder or a person holding an equivalent position in the bidder," it noted.

In the case of consortium, each member has to submit solvency certificate, which is a proof of an entity's financial stability.

As part of the debt resolution plan for the full service carrier, the lenders are looking to restructure "existing facilities and infusion of funds by way of loans or acquisition/ subscription of up to 75 per cent of equity share capital of the company". Shares of Jet Airways declined 1.59 per cent to close at Rs 263.40 on the BSE.

Meanwhile, for the third time in a week, national oil marketer IndianOil Thursday stopped fuel Supply to cash-starved Jet Airways for non-payment of dues.

This is the third time that the public sector oil marketing company has cut fuel supply to the airline in the past eight days, which is struggling to keep afloat amid acute liquidity crisis.

"IndianOil has stopped fuel supplies to Jet Airways in Mumbai, New Delhi and Hyderabad airports for its failure to clear dues," the source said. Mumbai is the largest base for the airline and it operates maximum flights from the city.

On March 4 and 5 also the oil company had cut supplies to Jet and restored only after getting an assurance from the airline management.

Agencies

Agencies

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