This may be the last-ditch effort to rescue Jet Airways.
Etihad Airways, the joint venture partner with a 24% per cent stake in the beleaguered airline, has requested the creditors to give them more time to submit expression of interest (EoI) in the bankruptcy court.
"It was after Etihad Airways, one of the Jet's largest shareholders, put in a request that the committee of creditors (CoC), which had met on Friday, gave an unconditional nod to extend the deadline for submitting the EoI," said a banker who attended the meeting.
Bidders now have time till August 10 to submit their bid.
"If there are no credible bidders, then the airline will have to proceed for liquidation," said the banker.
"We are hoping that Etihad will come with a credible plan which can be implemented," he added.
Jet Airways, which is now admitted in the Mumbai Bench of the National Company Law Tribunal (NCLT), is waiting to see if there are any credible bidders to fly it out of the financial mess.
On June 20, the Mumbai bench admitted Jet Airways under Insolvency and Bankruptcy Code (IBC) after a consortium of 26 lenders, led by State Bank of India (SBI), referred it to the bankruptcy court. The airline was grounded on April 17 as it ran out of cash. Jet owes over Rs 8,500 crore to lenders, over Rs 10,000 crore to its vendors, a majority being the aircraft lessors, and over Rs 3,000 crore to its employees, who have not been paid since March. The airline is having negative net worth for a long time, and has run a loss of over Rs 13,000 crore in the past few years.
In late June, the resolution professional Ashish Chhawchharia had floated EoIs for selling stake in the airline. The deadline for receipt of EoIs was kept at August 3.
05/08/19 Manju AB/DNA
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Etihad Airways, the joint venture partner with a 24% per cent stake in the beleaguered airline, has requested the creditors to give them more time to submit expression of interest (EoI) in the bankruptcy court.
"It was after Etihad Airways, one of the Jet's largest shareholders, put in a request that the committee of creditors (CoC), which had met on Friday, gave an unconditional nod to extend the deadline for submitting the EoI," said a banker who attended the meeting.
Bidders now have time till August 10 to submit their bid.
"If there are no credible bidders, then the airline will have to proceed for liquidation," said the banker.
"We are hoping that Etihad will come with a credible plan which can be implemented," he added.
Jet Airways, which is now admitted in the Mumbai Bench of the National Company Law Tribunal (NCLT), is waiting to see if there are any credible bidders to fly it out of the financial mess.
On June 20, the Mumbai bench admitted Jet Airways under Insolvency and Bankruptcy Code (IBC) after a consortium of 26 lenders, led by State Bank of India (SBI), referred it to the bankruptcy court. The airline was grounded on April 17 as it ran out of cash. Jet owes over Rs 8,500 crore to lenders, over Rs 10,000 crore to its vendors, a majority being the aircraft lessors, and over Rs 3,000 crore to its employees, who have not been paid since March. The airline is having negative net worth for a long time, and has run a loss of over Rs 13,000 crore in the past few years.
In late June, the resolution professional Ashish Chhawchharia had floated EoIs for selling stake in the airline. The deadline for receipt of EoIs was kept at August 3.
05/08/19 Manju AB/DNA
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