A 49.9 percent stake in Jet Airways' frequent-flyer loyalty programme Jet Privilege (JPPL), is likely to be the key attraction for those bidding for the grounded airline, which was referred to a bankruptcy court in June.
Lenders to Jet Airways expect an attractive valuation for JPPL, which has remained profitable for the past few years. This despite the cash crunch faced by Jet Airways that forced it to curtail flights for several months before halting operations in April, two people directly aware of the ongoing discussions said on the condition of anonymity.
Financial creditors, which includes banks, have claimed Rs 10,231 crore, while 2,400 operational creditors have claimed Rs 12,372 crore from Jet Airways.
"The shares held by Jet Airways in JPPL will be transferred to the successful bidder," said one of the two people cited above, adding that JPPL is likely to be an attractive asset for potential bidders of Jet Airways.
"Lenders expect bidders to play a significant premium for the JPPL stake in their overall bid for Jet Airways," the person added.
JPPL, which is 50.1 percent owned by Abu Dhabi-based Etihad Airways PJSC, is a profitable entity, with about Rs 839 crore of cash in hand, at the end of 2018, according to the document issued by the resolution professional on July 20, seeking expressions of interest (EoI) from potential bidders.
22/07/19 Mint/Moneycontrol.com
To Read the News in full at Source, Click the Headline
Lenders to Jet Airways expect an attractive valuation for JPPL, which has remained profitable for the past few years. This despite the cash crunch faced by Jet Airways that forced it to curtail flights for several months before halting operations in April, two people directly aware of the ongoing discussions said on the condition of anonymity.
Financial creditors, which includes banks, have claimed Rs 10,231 crore, while 2,400 operational creditors have claimed Rs 12,372 crore from Jet Airways.
"The shares held by Jet Airways in JPPL will be transferred to the successful bidder," said one of the two people cited above, adding that JPPL is likely to be an attractive asset for potential bidders of Jet Airways.
"Lenders expect bidders to play a significant premium for the JPPL stake in their overall bid for Jet Airways," the person added.
JPPL, which is 50.1 percent owned by Abu Dhabi-based Etihad Airways PJSC, is a profitable entity, with about Rs 839 crore of cash in hand, at the end of 2018, according to the document issued by the resolution professional on July 20, seeking expressions of interest (EoI) from potential bidders.
22/07/19 Mint/Moneycontrol.com
0 comments:
Post a Comment