Jet Airways crisis: Lenders invite bids for stake sale of air carrier on April 6; open to other options too

Lenders of Jet Airways said that they would invite bids for selling stake in the airline on April 6 as a part of a time-bound resolution plan.

As part of the debt resolution plan, lenders have taken control of the ailing airline. (Image: PTI)

Lenders of Jet Airways would invite bids for selling stake in the airline on April 6

Last date for submission of bids would be April 9

Banks are direct stakeholders and are dealing with commercial matters of the airline

Jet Airways crisis: Trouble for debt-laden Jet Airways seems to be increasing with the passage of time as on Thursday lenders of the budget air-carrier said that they would invite bids for selling stake in the airline on April 6 as a part of a time-bound resolution plan. According to a report by news agency PTI, the consortium of lenders, led by State Bank of India (SBI), took stock of the current situation at cash-strapped Jet Airways and decided on the timeline for the stake sale. “The bids would be invited on April 6 and the last date for submission would be April 9,” the lenders said in a statement. “The lenders are cognizant that the outcome of the efforts of the lenders will depend on the interest shown by the parties on sale of stake in the company,” the statement from lenders read further. While all efforts would be made for the stake sale, the lenders said other options ‘may be considered’ should these efforts not result in an acceptable outcome. As part of the debt resolution plan, lenders have taken control of the ailing airline. Earlier this week, Civil Aviation Minister Suresh Prabhu ruled out interference in efforts to help cash-strapped Jet Airways, saying that the government should not be seen to be doing any kind of deals to help an airline. Against the backdrop of lenders set to take control of Jet Airways under the debt resolution plan, Prabhu also stated that the banks are direct stakeholders and are dealing with commercial matters of the airline where the ministry would not like to intervene. “The ministry should not be dealing in any commercial transactions of any kind. Same thing I did for railways or for anywhere else. The issue is between banks and the management,” he added. Prabhu had said the ministry should not be seen to be doing any deals of any kind that would help in any way. “It is always possible. You can help a company by bringing the other down,” he had said.

Published at : 04 Apr 2019 10:30 PM (IST)

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