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Lenders To Invite Bids For Jet Airways Stake Sale On 6 April


Bids for the stake sale of Jet Airways will be invited on 6 April by the lenders of the cash-strapped airline, according to a statement released on Thursday.

The lenders of the airlines, led by SBI, in the statement, said that they intend to pursue bailout plan for a stake sale in the company under the present regulatory and legal framework and intend to invite expressions of interest starting Saturday. The bidding would close on 9 April and in the absence of receiving satisfactory bids, it will explore other options.

Lenders To Invite Bids For Jet Airways Stake Sale On 6 April

"This will be invited on 6 April and will need to be submitted by 9 April. The lenders are cognizant that the outcome of the efforts will depend on the interest shown by the parties on sale of stake in the company," the statement said.

The decision was taken considering the operations and regulatory developments of the airline.

It further said that if the stake sale fails, "other options may be considered if these efforts do not result in an acceptable outcome."

The "other options" were not explained but experts suggest that the lenders may initiate bankruptcy proceedings against Jet Airways.

The debt resolution plan released last month was based on RBI's 12 February circular. However, with the Supreme Court's ruling against it in the last week, there was uncertainty on the agreed upon rescue plan.

On Thursday, the RBI governor Shaktikanta Das said that a fresh circular issue will be made. In the meantime, banks and lenders are expected to take a decision in their best interest.

Read more about: jet airways
Story first published: Friday, April 5, 2019, 12:16 [IST]
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