A K Purwar likely to chair Jet Airways' interim management committee

The consortium of lenders to Jet Airways is considering roping in former SBI chief A K Purwar as chairman of the interim management committee as the cash-strapped airline looks for a new investor, a senior official said. The official of the State Bank of India (SBI) also said the lenders are in the process of appointing SBI Capital as advisor in efforts for finding a the new investor.

As the full service carrier struggling to stay afloat, its board on March 25 approved a debt resolution plan that would see immediate fund infusion of Rs 1,500 crore and lenders taking control of the airline.

According to the official, Purwar is expected to be soon appointed as chairman of the interim management committee. Purwar was the chairman of the State Bank of India between 2002 and 2006. The bank is also the lead lender to Jet Airways.

Apart from monitoring the daily operations and cash flow of the company, the committee would also oversee the process for roping in a new investor, the official said.

"My expectation is May 31... Market is open for everyone whosoever wants to come in. There will be expression of interest (EoI) which will be given by April 9 and binding bids by April 30,"  SBI Chairman Rajnish Kumar said last week.

Jet Airways, one of the oldest private sector airlines, is sitting on a debt of Rs 8,200 crore and requires about Rs 4,500 crore for carrying on its operation smoothly.

Acute financial crunch has forced the airline to ground aircraft, cancel flights and delay payment of salaries, including to pilots.