Binding bids from investors to determine Jet Airways' revival, say lenders
1 min read . Updated: 18 Apr 2019, 08:15 AM IST
Premium- The best way forward for the survival of Jet Airways is to get the binding bids from potential investors, says lenders
- This comes in a day after Jet Airways temporarily shut operations as lenders declined its request for an interim funding
Lenders to Jet Airways said on Thursday that they have decided, the best way forward for the survival of Jet Airways is to get the binding bids from potential investors.
“The lenders after due deliberations decided that the best way forward for the survival of Jet Airways is to get the binding bids from potential investors who have expressed expression of interest (EOI) and have been issued bid documents on April 16," a statement from the consortium of bankers said.
The statement added that lenders are “reasonably hopeful" that the bid process is likely to be successful in determining fair value of the enterprise in a transparent manner.
This comes in a day after Jet Airways temporarily shut operations as lenders declined its request for an interim funding to keep the airline afloat. Jet Airways (India) Ltd flew its last flight on Wednesday night—9W 2502 from Amritsar to Mumbai.
“Late last night, Jet Airways was informed by the State Bank of India (SBI), on behalf of the consortium of Indian lenders, that they are unable to consider its request for critical interim funding," Jet Airways said in a statement on Wednesday. “Since no emergency funding from the lenders or any other source is forthcoming, the airline will not be able to pay for fuel or other critical services to keep the operations going."
The airline said it would await the bid finalization process by the lenders that is likely to bring in fresh equity by the end of May.
A banker told Mint on Wednesday that the lenders to the airline had rejected its request for emergency funds as they were unsure if the funds pumped into the airline at this stage could be recovered later.
“All along, we have neither declined nor accepted Jet Airways’ request for interim funding," the banker said on condition of anonymity.
“We have always wanted some assurance that this money that we give will not go down the drain and can be recovered at a later stage. Whatever money we give, we would want to get it back and that assurance is not visible. Things will be clearer once we are able to move ahead with the planned resolution process," the banker added.
