Jet’s lenders extend deadline after poor show in first round

Daniel Fowler
April 12, 2019

The development comes as a consortium of lenders led by the State Bank of India tries to sell a majority stake in the debt-laden airline to keep it flying.

Apart from vendors, the airline's aircraft lessors too are upset with the current financial situation, with some of them requesting the Directorate General of Civil Aviation (DGCA) to de-register their aircraft leased to the company.

The country's largest oil marketing company Indian Oil Corporation (IOC) has resumed fuel supply to Jet Airways. Meanwhile, bankers have extended the timeline to submit the Expression of Interest (EOIs) to April 12 for the third time to give more players adequate time to participate.

International Olympic Committee and Jet did not immediately respond to a request for comment.

"The qualified bidders will be expected to submit their respective binding bid (s) latest by April 30, 2019 subject to the terms set out under the bid document", SBI Capital Markets said in a notice posted on its website. "Refuelling has begun after 8.30 p.m." a senior airline official said.

The Telegraph
The Telegraph

"Bidders are required to provide the solvency certificate ... on their letterhead and certified by Managing Director/ Full Time Director / Chief Executive Officer of the bidder or a person holding an equivalent position in the bidder", it noted.

Under the clarification issued on Wednesday, lenders have allowed "acquisition ownership of the company on as is where is basis. and/or restructuring of the existing facilities and infusion of funds by way of loans or acquisition of up to 75 per cent equity stake in the company".

Adding to the woes of the crippled Jet Airways, a European cargo services provider has seized one of its Boeing planes at the Amsterdam airport for non-payment of dues on April 10. Passengers travelling on Jet flight 9W321 from Amsterdam to Mumbai were in for a shock when their flight was cancelled just as boarding was about to begin.

A Jet Airways spokesperson said "Jet Airways flight 9W 231 Amsterdam-Mumbai of Wednesday has been delayed due to operational reasons". The airline is now operating only 26 aircraft as several planes from its earlier fleet size of around 120 remain grounded for non-payment of lease rentals.

Jet Airways has debt of Rs 7,654 crore as of December 31, 2018.

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