Binding Investor Proposals to Determine Jet Airways' Revival, Creditors Say


Jet Airways lenders said on Thursday that they had decided that Jet Airways' best way to survive is to get proposals from potential investors.

"Creditors after due deliberations have decided that Jet Airways' best way to survive is to get proposals from potential investors who expressed interest (EOI) and were issued bidding documents on April 16," a statement from the company said. the consortium of bankers said.

The statement added that lenders are "reasonably hopeful" that the bidding process is likely to succeed in determining the fair value of the company in a transparent manner.

This comes a day after Jet Airways temporarily closed operations as creditors turned down their request for provisional funding to keep the airline afloat. Jet Airways (India) Ltd flew its last flight on Wednesday night – 9W 2502 from Amritsar to Mumbai.

"Jet Airways was informed by the State Bank of India (SBI) on behalf of the consortium of Indian lenders that they can not consider their request for interim critical financing," Jet Airways said in a statement on Wednesday. market. "As no emergency funding from creditors or from any other source is available, the airline will not be able to pay for fuel or other critical services to keep operations running."

The airline said it would await the process of finalizing the bidding by creditors, which should bring new equity until the end of May.

A banker said mint on Wednesday, the airline's creditors rejected their request for emergency funds because they were not sure whether the funds pumped into the airline at this stage could be recovered later.

"From the outset, we have neither refused nor accepted Jet Airways' request for provisional funding," the banker said on condition of anonymity.

"We've always wanted to have some assurance that this money we give will not be drained and can be recovered at a later stage. Whatever the money we give, we would like to get it back and this guarantee is not visible. Things will become clearer when we are able to move forward with the planned resolution process, "added the banker.


Source link