Jet airways lenders meet, intend to pursue bank-led resolution plan for sale of stake
The airline has over one billion dollars in debt and has to repay money to banks, lessors of planes.
New Delhi: The lenders of Jet Airways (India) Limited met on Thursday to take stock of the current situation of the company.
According to a statement issued by Jet Airways lenders, they intend to pursue the Bank-led resolution plan for the sale of stake in the company in a time-bound manner under the present legal and regulatory framework and intend to invite expressions of interest.
“This will be invited on 6th April 2019 and will need to be submitted by 9th April 2019. The lenders are cognizant that the outcome of the efforts of the Lenders will depend on the interest shown by the parties on the sale of the stake in the Company”, a statement read.
However, the statement also said whilst all efforts will be made for the stake sale by the lenders, other options may be considered by the lenders should these efforts not result in an acceptable outcome.
On March 25, then Jet Airways Chairman Naresh Goyal had stepped down, paving way for lenders to bail out the financially troubled airline he set up 25 years ago.
Jet has been suffering bruising competition from low-cost airlines, fluctuating crude prices and a weak rupee. The airline has over one billion dollars in debt and has to repay money to banks, lessors of planes and suppliers besides clearing pending salaries to its pilots.