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Regular-article-logo Friday, 26 April 2024

Bids sought for Jet Airways assets

The next hearing on the insolvency case and RP’s progress report is on July 23

PTI Mumbai Published 20.07.19, 08:32 PM
The Jet Airways stock ended a three-day losing streak and rose almost 10 per cent on the bourses today on value buying

The Jet Airways stock ended a three-day losing streak and rose almost 10 per cent on the bourses today on value buying (iStock)

The resolution professional (RP) of Jet Airways on Saturday called for expressions of interest (EoIs) to sell the grounded airline’s meagre assets by August 3.

In an advertisement posted on the airline’s website and in newspapers, the RP, Ashish Chhawchharia, appointed by Jet Airways’ lenders, has set a deadline of August 3 for the receipt of EoIs, August 6 as the date of issue of the provisional list of the prospective resolution applicants and August 11 as the last date of submission of objections.

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The advertisement stated that on August 14, the final list of the prospective resolution applicants will be issued.

The final date for the submission of resolution plans of these applicants will be September 5, it added.

The estimated date for the submission of resolution plan by the RP to the National Company Law Tribunal for approval is September 20.

The airline’s assets include 14 aircraft, including 10 Boeing planes — down from 124 before the grounding — and a 49 per cent stake in Jet Privilege and a few buildings.

Its liabilities are over Rs 36,000 crore, including more than Rs 10,000 crore of vendor dues, Rs 8,500 crore along with interest owed to the lenders, over Rs 3,000 crore in salary dues and more than Rs 13,500 crore in accumulated losses of the past three years.

The lenders also listed spares, slots and routes as the assets of the airline, which operated its last flight on April 17.

The next hearing on the insolvency case and RP’s progress report is on July 23.

The airline was sent to the NCLT on June 17 to recover loans of Rs 8,500 crore.

On June 20, the NCLT admitted the insolvency petition filed by the lenders’ consortium led by State Bank of India.

Before it was sent to the NCLT, the banks, which own half of the shares in the airline, had sought expressions of interest from both strategic and financial investors to sell up to a 75 per cent stake.

The bankers received four non-binding EoIs in April, while Etihad Airways, which owns 24 per cent of the carrier, had submitted a conditional bid. But none of the bidders moved ahead with their plans.

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