Jet lenders optimistic about sale

   By PC Bureau ,  18-Apr-2019
Jet lenders optimistic about sale

Jet Airways lenders are “reasonably hopeful” that the bidding process for the sale of the airline will be successful

Jet Airways lenders are “reasonably hopeful” that the bidding process for the sale of the airline will be successful.

"Lenders are reasonably hopeful that the bid process is likely to be successful in determining the fair value of the enterprise in a transparent manner," they said in a statement. The statement from the lenders, came a day after the airline suspended all its flight operations indefinitely. Jet Airways took the decision to stop flying after the declined of release emergency funds for the carrier. 

Jet operated over 120 planes and well over 600 daily flights. The airline, which has roughly 16,000 employees, has in recent weeks been forced to cancel hundreds of flights and to halt all flights out of India as funds dried up.

“The lenders after due deliberations decided that the best way forward for the survival of Jet Airways is to get the binding bids from potential investors who have expressed Expressions of interest and have been issued bid documents on 16th April,” the lenders said

The Ministry of Civil Aviation said that it will support the resolution process within the existing regulatory framework. The Director General Of Civil Aviation and other regulators are monitoring the situation carefully to ensure that all existing rules regarding refunds, cancellations, and alternate bookings are followed strictly.

Jet’s lenders were set to invite binding bids from four shortlisted suitors that include private equity firms TPG Capital and Indigo Partners, Indian wealth fund National Investment and Infrastructure Fund, and Etihad Airways, which already owns a minority stake in Jet.

The airline is unlikely to come back on its feet any time soon. The airline's total liabilities are said to be about Rs 20,000 crore which includes Rs 8,400 crore owed to banks.