BackJet Airways lenders to meet today; decide on bid evaluation criteria
Lenders to the airline will discuss other operational issuesThe last date for submission of expressions of interest is 3 August
PremiumMumbai: The committee of creditors (CoC) of Jet Airways will meet on Thursday to discuss the bid evaluation criteria for potential bidders, said a person aware of the development.
A bid evaluation criteria is a set of parameters used to weigh bids to see which one would give maximum value to the seller.
The person quoted above said, apart from the bid evaluation guidelines, lenders to the airline will discuss other operational issues. The last date for submission of expressions of interest is 3 August.
This is the second meeting of Jet Airways’ CoC after the National Company Law Tribunal (NCLT) admitted the company under the Insolvency and Bankruptcy Code (IBC) last month. The CoC of Jet Airways, on 19 July, approved an interim funding of $10 million (about ₹69 crore) for the airline, which will be used for the corporate insolvency resolution process.
On 20 June, the Mumbai bench of the NCLT admitted Jet Airways under the Insolvency and Bankruptcy Code (IBC) after lenders referred it to the bankruptcy tribunal.
On 18 July, the resolution professional (RP) appointed by lenders said financial creditors who have the first right to proceeds from Jet Airways’ bankruptcy resolution, have claimed ₹10,231 crore, while 2,400 operational creditors have claimed ₹12,372 crore.
The RP of Jet Airways said out of the ₹24,887 crore, it has admitted claims of ₹8,462.79 crore from financial creditors. Claims of about ₹15,044 crore are under verification, while those of ₹1,380.82 crore were rejected.
A consortium of 26 bankers, led by the State Bank of India, approached the tribunal to recover dues of over ₹8,500 crore. The lenders had been trying to sell the beleaguered airline as a going concern for the past six months.
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