Jet Airways stakes sale on April 6

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Jet Airways plane on the airport
Jet Airways plane on the airport

New Delhi : Lenders to Jet Airways (India) Ltd on Thursday announced that they will be accepting bids for a stake sale in the cash-strapped airline on Saturday (April 6). However, in the absence of satisfactory bids, lenders may explore initiating bankruptcy proceedings against Jet Airways.

The statement has cleared the uncertainty over Jet Airways' bailout plan after the Supreme Court on Tuesday struck down Reserve Bank of India's (RBI) 12 February 2018 circular for bad loan resolution.

“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," said the statement.

The decision came after the lenders took note of the Jet Airways’ operations as well as the regulatory developments.

They mentioned that all efforts will be made to sell Jet Airways stake, however, they are ready for other options too in case situation ends up with no satisfactory results.

"Other options may be considered if these efforts do not result in an acceptable outcome", the lenders said.

The airline is now waiting for the infusion of the Rs 1,500 crore committed by lenders for paying aircraft lessors as well as for clearing part of salary dues.

The company also needs to quickly re-induct its grounded planes. The airline, which is operating about 26 aircraft out of its original 119 fleet, cannot afford to let its fleet to go below 20 aircraft without risking a government review on whether it can continue to fly international routes.