Jet airways creditors mull interim financing for revival

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Updated: July 17, 2019 6:53:46 AM

The six aircraft of Jet, along with around Rs 1,000 crore of spare parts, Jet Privilege shares and intangible assets, including the flying rights and slots of Jet Airways will be part of what is put up for sale, the source said.

Jet airways, Committee of Creditor, industry news, Jet airways news, Jet airways share price, Jet airways crisiThe financial creditors will decide on various other issues including the ratification of SBI Capital Markets as advisor for the sale process. (File Photo | Reuters)

The committee of creditors (CoC) of Jet Airways held its first meeting on Tuesday and sources stated that the lenders discussed providing interim financing for revival of the airline and inviting bids for its sale by Saturday.  Bids could be invited by July 20 and are expected to be submitted by the first week of August, a source said.

“Interim financing was discussed in the meeting. The lenders will also decide by Friday on the eligibility criteria for bidders of the airline, including the net worth criteria. Grant Thornton has provided two options for minimum net worth criteria,” the source said, adding that the CoC is working to fast-track the process.

The financial creditors will decide on various other issues including the ratification of SBI Capital Markets as advisor for the sale process. SBI Capital Markets was earlier handling the sale process of Jet Airways.  The lenders took stock of the assets of the airline. The six aircraft of Jet, along with around Rs 1,000 crore of spare parts, Jet Privilege shares and intangible assets, including the flying rights and slots of Jet Airways will be part of what is put up for sale, the source said.

Since the grounding of the airline on April 17, Jet’s slots have been temporarily reallocated to other airlines.  “The team of resolution professionals have already engaged with the civil aviation ministry and DGCA on returning the slots. They have said they will consider our request,” the source said.

In the Parliament, minister of state for finance Anurag Thakur said on Tuesday that public sector banks alone have filed claims worth Rs 4,398 crore against Jet Airways.  The National Company Law Tribunal, had on June 20, initiated insolvency proceedings against Jet Airways following an application filed by the State Bank of India. The interim resolution professional filed the first fortnightly report on July 5. The airline halted operations on April 17 after lenders refused to to provide emergency funding.

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