Jet Airways' stake acquisition: Bidders in consortium have to 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 14 April, 2019,” it said in a set of clarifications issued regarding the bid document. [caption id=“attachment_2693392” align=“alignleft” width=“380”] A file image of a Jet Airways aircraft. PTI[/caption] According to the EOI document issued on Monday, 10 April 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 percent to close at Rs 263.40 on the BSE.