Jet Airways lenders likely to invite fresh bids, say sources

Jet Airways lenders' have decided to invite fresh expression of interest (EoI) for selling a stake in the bankrupt airline, sources said on Tuesday.

The committee of creditors (CoC) of Jet Airways is likely to come out with a revised EoI for the stake sale in the defunct airline on Wednesday, said a source.

Last week, the CoC had met to discuss the way forward for the airline. It was the 11th meeting of CoC. "The committee of creditors has given its approval to the resolution professional (RP) to float a fresh EoI for stake sale in the grounded Jet Airways. The RP is likely to issue the bid document on Wednesday," a source privy to information told PTI.

The last date for submission of bid is likely to be May 27, said another source.

In March this year, the National Company Law Tribunal (NCLT) had allowed 90 days' extension for the corporate insolvency resolution process of the airline.

This came after the airline's resolution professional had filed an application in NCLT seeking 90 days' extension for the insolvency process after it failed to attract any bidder.

The CoC on February 18 had set a new deadline of March 10 for submission of bids for the grounded airline after South American conglomerate Synergy Group and New Delhi-based Prudent ARC failed to meet the previous deadline.

Later, Synergy Group backed out of the bidding process over slot issues. The March 10 deadline was set after Russia's Far East Asia Development Fund also evinced interest in Jet Airways.

The cash-strapped airline, which was grounded in April 2019, owes more than Rs 8,000 crore to banks, with public sector lenders having significant exposure.

The NCLT on June 20, 2019, admitted the insolvency petition filed by the lenders' consortium led by State Bank of India against Jet Airways.

The bankruptcy court had appointed Ashish Chhawchharia as RP.

Jet Airways has liabilities over Rs 26,000 crore, which include over 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 over Rs 13,500 crore in accumulated losses over the past few years.