Lenders unwilling to provide extra funds to grounded Jet Airways

Lenders have expressed their inability to provide further capital to pay one month’s salary of Jet Airways employees following a recommendation from the National Company Law Tribunal (NCLT). 

A proposal was submitted by the resolution professional to the committee of creditors in its second meeting on Thursday. The committee took a sympathetic view of the request but is unwilling to provide further capital, a source said. 

An amount of Rs 90 crore was sought to pay salary to around 8,000 Jet employees. In the first meeting, lenders had agreed to release around Rs 70 crore to the airline for asset preservation purposes but the amount is yet to be processed. Jet was referred to the bankruptcy court on June 20 by State Bank of India after bankers failed to find any takers despite months of negotiations. 

Jet stopped flying on April 17. The deadline for submitting expressions of interest for Jet ends on August 3. However, sources said the resolution professional had not got any bids for the airline so far. 

The deadline for submission of bids may be extended beyond August 3 if no bids are received within the period.