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Jet Airways Gains 5% On Reports Of Receiving 4 Bids


Shares of Jet Airways (India) Ltd rose 4.98 percent to hit an intraday high of Rs 36.90 on NSE on Friday. The surge was seen following a PTI report citing sources that said the lenders of the cash-strapped airline have discussed the feasibility to extend the deadline for submission of expressions of interests (EoI) for the airline after four parties showed preliminary interest.

Jet Airways Gains 5% On Reports Of Receiving 4 Bids

In the previous month, EOIs were floated by resolution professional Ashish Chhawchharia to sell stake in the bankrupt airline. The deadline for sending EOIs was set at 3 August.

A Mint report said that SBI Capital Markets, which is advising the lenders in finding new investors for the airline, has reached out to as many as 20 potential investors, of which four showed initial interest in bidding.

Meanwhile, State Bank of India (the lead in the Jet Airways' lender consortium) has sanctioned Rs 10 crore as interim funding to the airline that shut its operations in April. Other banks are also in the process of approving their share of the funding, the PTI report said.

The interim funding will be used in maintenance of Jet Airways' assets (including aircrafts) and to hire staff on contract to verify creditor claims. The issue of releasing atleast one month's salary or part of salaries to the employees of the airline was also discussed with the lenders as suggested by the NCLT to Chhawchharia.

Read more about: jet airways
Story first published: Friday, August 2, 2019, 12:54 [IST]
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