SBI Capital Markets, the State Bank of India's investment wing, says it has received a sealed bid from Etihad Airways (EY, Abu Dhabi Int'l) for Jet Airways (JAI, Mumbai Int'l). The deadline for bids for shareholder and managerial control of the cash-strapped carrier was on Friday, May 10.

In a statement issued shortly after the deadline, SBICM said it would submit Etihad's offer to the ailing carrier's lenders for consideration. India's Mint newspaper has since cited sources familiar with developments as saying Etihad's offer was non-binding and that it wants creditor banks to commit to additional loans once it infuses funds into the company. However, as Etihad has been unable to find a local Indian partner, lenders may need to take an about 80% haircut on their outstanding loans to Jet Airways.

Jet Airways owes financial institutions around USD1.2 billion

Aside from Etihad, which already controls a 24% stake in Jet, SBICM said it had also received a few unsolicited offers, which the lenders would deliberate upon later.