Tuesday, August 20, 2019

Jet Airways crisis: Lenders mull liquidation of grounded airline after EoIs attract no major bidder, CoC may meet this week

The revival of grounded Jet Airways seems to be over with the debt-laden airline's strategic partner Etihad Airways reportedly moving out of the resolution plan, said a media report.

With all the efforts by State Bank of India-led lenders' consortium to take the airline into the sky again having failed, liquidation is reportedly the next step to recover the dues and committee of creditors (CoC) for Jet Airways may meet this week to decide the course of action, said a report in the Financial Express.

The decision of Abu Dhabi-based Etihad Airways to exit from the resolution plan of the crisis-hit airline has reportedly hastened Jet Airways' liquidation process as a section of the lenders finds this is the way out to recover up to 10 percent of the outstanding debt, the report said.
“Lenders will most likely go for liquidation. The CoC will have to agree on a final decision, but they are unlikely to invite expression of interests (EoIs) again,” the report said quoting a banking official.

Last week, it was reported that the financial results for the June quarter of Jet Airways were not finalised and the process was taking time due to the "complexities of issues" being faced by the airline.

The affairs of Jet Airways, which closed down its operations on 17 April this year, are now being managed by resolution professional Ashish Chhawchharia under the insolvency law.

On 13 August, Etihad Airways had said that it would not express interest in reinvesting in Jet Airways because of unresolved issues concerning the cash-strapped airline's liabilities.

Grounded Jet Airways had invited prospective bidders to express interest and last week, it had extended the deadline to 10 August.
20/08/19 First Post

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