Mumbai: Lenders to Jet Airways will vote this week to decide who all can bid for the bankrupt airline, as they don’t want any frivolous players in the race, the committee of creditors (CoC) discussed in its first meeting on Tuesday.
E-voting should be over by Thursday or Friday, and advertisements inviting expressions of interest (EoIs) for Jet are scheduled to be out by Saturday, July 20, said sources who attended the meeting. The suitors will get time till the first week of August to submit EOIs.
The reason why such a short window is being extended for submitting EoIs is that the National Company Law Tribunal (NCLT) had ordered that the corporate insolvency resolution process of the airline be completed before the stipulated 180 days as the matter was of national interest.
In the meantime, the banks may consider extending a $10-million (about Rs 70-crore) loan to Jet. This week’s voting will decide on the interim financing quantum, as well as the appointment of valuation experts for the assets, and the bidding criteria.
The lenders have a big task on their hand — to balance the eligibility criteria, because if they set the bar too high, then there is a chance of the airline not attracting any bidders; if it’s too low, it might not be economically viable for the lenders to take the trouble.
17/07/19 Subrata Panda/Business Standard
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E-voting should be over by Thursday or Friday, and advertisements inviting expressions of interest (EoIs) for Jet are scheduled to be out by Saturday, July 20, said sources who attended the meeting. The suitors will get time till the first week of August to submit EOIs.
The reason why such a short window is being extended for submitting EoIs is that the National Company Law Tribunal (NCLT) had ordered that the corporate insolvency resolution process of the airline be completed before the stipulated 180 days as the matter was of national interest.
In the meantime, the banks may consider extending a $10-million (about Rs 70-crore) loan to Jet. This week’s voting will decide on the interim financing quantum, as well as the appointment of valuation experts for the assets, and the bidding criteria.
The lenders have a big task on their hand — to balance the eligibility criteria, because if they set the bar too high, then there is a chance of the airline not attracting any bidders; if it’s too low, it might not be economically viable for the lenders to take the trouble.
17/07/19 Subrata Panda/Business Standard
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