MUMBAI, April 30 (Xinhua) -- Employees of India's embattled airline Jet Airways have put forth a proposal to take control of the ailing airline by infusing 7,000 crore rupees (1 billion U.S. dollars).
Under the proposal submitted to the lead lender - State Bank of India, the employees plan to put up capital through stock options worth 572.8 million U.S. dollars and another 429.6 million U.S. dollars raised from external investors.
The airline, which has an outstanding debt of around 1 billion U.S. dollars, had suspended its operations on April 17 due to fund scarcity to run its operations.
The letter addressed to the bank chairman said, "The contribution from employees would be realized from their future earnings and increased productivity ... As per our initial estimate, the contribution of employees group over a hypothetical 5-year Employee Stock Ownership Program (ESOP) is likely to be upward of 572.8 million U.S. dollars. In addition, we are confident of securing up to 429.6 million U.S. dollars from outside investors."
"It is realistic to understand that the employees would not have the cash or credit needed to buy the company outright. The contribution from employees would be realized from their future earnings and increased productivity, a value that can be quantified in advance with a fair degree of certainty," the letter added.
The last date for submission of bids has already ended on April 12 and the list of shortlisted bidders will be finalized by May 10.
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