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Jet Airways' lenders to invite bids for stake sale on April 6, also ready to look at other options

Jet Airways, Which Is Grappling With Acute Financial Woes, Had A Fleet Of Around 119 Planes.

News Nation Bureau | Edited By : Abhinav Gupta | Updated on: 05 Apr 2019, 12:06:02 AM
Jet Airways' lenders to invite bids for stake sale on April 6

New Delhi:

Lender of debt-laden Jet Airways on Thursday said they would invite bids for selling stake in the airline on April 6 as part of a time-bound resolution plan.

Jet Airways, which is grappling with acute financial woes, had a fleet of around 119 planes. On Thursday, Civil Aviation Secretary Pradeep Singh Kharola said that "26 planes are flying currently".

The consortium of lenders, led by State Bank of India (SBI), took stock of the current situation at cash-strapped Jet Airways and decided on the timeline for the stake sale.

“Lenders intend to pursue bank-led resolution plan for sale of stake in the company in a time-bound manner under present legal and regulatory framework and intend to invite expressions of interest. It'll be invited on 6 April and will need to be submitted by 9 April,” the lenders said in a statement.

“The Lenders are cognizant that the outcome of the efforts of the Lenders will depend on the interest shown by the parties on sale of stake in the Company. Whilst all efforts will be made for the stake sale by the Lenders, other options may be considered by the Lenders should these efforts not result in an acceptable outcome,” the statement added.

For the past few weeks, the airline has been grounding its aircraft in tranches due to non-payment of dues to lessors.

On March 25, the airline's board approved a debt-resolution plan under which the lenders would take control of the airline and also make an immediate fund infusion of Rs 1,500 crore.

On Wednesday, Naresh Goyal, also former chairman of the airline, said he had agreed to every term and condition laid down by lenders to ensure timely release of funds for the airline.

Acute financial crunch has forced the airline to ground aircraft, cancel flights and delay payment of salaries, including to pilots.

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First Published : 04 Apr 2019, 09:42:09 PM