The last date to submit expressions of interest (EoIs) for Jet Airways has been extended to 10 August after the company received interest from only a “couple of investors" by Saturday, the original deadline.
A person aware of the development said on the condition of anonymity that since the insolvency resolution process is keeping pace with the prescribed timelines, it has been decided to wait for a few more days and gather more resolution proposals.
“This is to bring to the attention of all interested resolution applicants that the revised deadline for submission stands at 4 pm (India time) on 10 August, 2019," said Ashish Chhawchharia, Jet Airways' resolution professional in a note on Saturday.
The note said that on basis of requests received from prima-facie credible interested resolution applicants for some additional time, the deadline for submission of EoI is being provisionally extended, subject to formal ratification by the committee of creditors.
“The proposed extension is to ensure the objectives of the IBC are achieved and we are able to maximise the value of the assets of the corporate debtor and achieve a better outcome for all stakeholders in this fast-track process," the note said.
The invitation for EoIs in the ongoing corporate insolvency resolution process of Jet Airways, released by the resolution professional on 20 July, 2019 had specified the deadline to be 3 August, 2019.
Mint reported on 1 August that as many as four potential bidders have evinced interest in Jet Airways (India) Ltd. SBI Capital Markets, which is advising the lenders in the process of finding new investors for the grounded airline, has reached out to as many as 20 potential investors.
State Bank of India (SBI), which leads the lenders’ consortium for Jet Airways, has sanctioned ₹10 crore as a part of the approved interim funding of $10 million (about ₹69 crore) for the airline, which was decided by the lenders earlier in July.
At the meeting on 1 August, lenders, however, have reservations about releasing a month’s salary for Jet Airways’ staff as sought by several worker unions.
Jet Airways, which grounded its operations in April, due to an acute fund crunch, is yet to pay salaries since January to a section of its staff such as pilots, engineers and general managers. The airline hasn’t paid salaries to the rest of its staff since March.
On 20 June, the Mumbai bench of the National Company Law Tribunal (NCLT) admitted Jet Airways under the Insolvency and Bankruptcy Code (IBC) after lenders referred it to the bankruptcy court.