State-run SBI on Friday said Etihad Airways had sought a waiver from an open offer and assurance of flying slots to take over Jet Airways. But the lenders to the debt-ridden carrier had no authority to accommodate the relaxations sought.

State Bank of India (SBI) chairman Rajnish Kumar had on Thursday defended the lenders’ decision to take Jet Airways to bankruptcy, saying “it was their last effort to find a resolution” for the grounded airline. Kumar also did not rule out the possibility of liquidation.

Earlier this week, the SBI-led consortium of 26 lenders had decided to seek resolution under IBC as they had received only a conditional bid.

In a late evening clarification to the stock exchanges on Friday, the SBI said the financial position of Jet Airways (lndia) Limited was weak and the lenders were continuously trying for viable resolution over the last one year on account of operational losses.

Reputed consultants — SBI Caps and McKinsey — were brought in as advisers. lt was also decided to initiate a bidding process to bring in investors, the SBI said.

As part of the bid process, expressions of interest (Eol) for investment in Jet Airways were sought. Etihad, NIIF, TPG Capital and Indigo Partners had expressed their interest on April 10, 2019. The bidding process for the ailing carrier closed on May 10, 2019.

As no binding bids were received, discussions were held with Etihad (EY) and other prospective investors to find a way to infuse funds, it said.

“EY had sought certain relaxations viz waiver of open offer, assurance of flying slots etc. As the lenders did not have any authority to accommodate some of the relaxations sought by EY, it was not considered feasible to negotiate on the conditions laid by EY,” the SBI told the exchanges.

It further said that as a sustainable resolution plan could not be devised and two operational creditors had already approached the NCLT, “the member banks agreed in-principle to approach the NCLT, pursuant to the statutory right available to them” under the Insolvency and Bankruptcy Code, 2016.

Accordingly, an application for corporate insolvency resolution process was filed with NCLT, Mumbai, on June 17, it said.

“Bank is only a lender to Jet Airways and is not involved in or responsible for the management of the affairs of the company,” the SBI said.