Jet Airways lenders 'reasonably hopeful' of getting successful bids for grounded cash-strapped airline

Jet Airways still has a market capitalisation of about $400 million, as investors have clung to hopes of a rescue deal being clinched.

Reuters April 18, 2019 09:19:40 IST
Jet Airways lenders 'reasonably hopeful' of getting successful bids for grounded cash-strapped airline
  • Jet Airways, once India’s largest private airline, on Wednesday evening halted all flight operations indefinitely

  • The carrier, saddled with roughly $1.2 billion of bank debt, has been teetering for weeks

  • At its peak, Jet operated over 120 planes and well over 600 daily flights.

Mumbai: Lenders to India’s Jet Airways Ltd said on Thursday they are “reasonably hopeful” that the bidding process for the grounded airline will end successfully.

Jet Airways, once India’s largest private airline, on Wednesday evening halted all flight operations indefinitely after lenders led by State Bank of India declined to extend more funds to keep it going.

The carrier, saddled with roughly $1.2 billion of bank debt, has been teetering for weeks after failing to receive a stop-gap loan of about $217 million from its lenders, as part of a rescue deal agreed in late March.

Jet Airways lenders reasonably hopeful of getting successful bids for grounded cashstrapped airline

Representational image. Reuters

At its peak, Jet operated over 120 planes and well over 600 daily flights. The airline, which has roughly 16,000 employees, has in recent weeks been forced to cancel hundreds of flights and to halt all flights out of India as funds dried up.

“The lenders after due deliberations decided that the best way forward for the survival of Jet Airways is to get the binding bids from potential investors who have expressed EoI and have been issued bid documents on 16th April,” the lenders said on Thursday, referring to expressions of interest.

“Lenders are reasonably hopeful that the bid process is likely to be successful in determining fair value of the enterprise in a transparent manner.”

CNBC-TV18 reported on Tuesday that Jet’s lenders were set to invite binding bids from four shortlisted suitors that include private equity firms TPG Capital and Indigo Partners, Indian wealth fund National Investment and Infrastructure Fund (NIIF), and Etihad Airways, which already owns a minority stake in Jet.

Shares in Jet, which have tumbled about 60 percent in the last year, closed on Tuesday at Rs 240.50 a share. Markets were closed on Wednesday due to a public holiday.

Jet still has a market capitalisation of about $400 million, as investors have clung to hopes of a rescue deal being clinched.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

DGCA says suspension of international passenger flights extended till 15 July, may allow operation on case-by-case basis
India

DGCA says suspension of international passenger flights extended till 15 July, may allow operation on case-by-case basis

Scheduled international passenger flights were suspended in India on 23 March due to the coronavirus pandemic.

DGCA extends suspension of scheduled international flights till 31 July, some on selected routes may be allowed
India

DGCA extends suspension of scheduled international flights till 31 July, some on selected routes may be allowed

Scheduled international passenger flights were first suspended in India on 23 March due to the coronavirus pandemic

AirAsia India sacks pilot Gaurav Taneja after his video alleging violations of safety regulations; DGCA issues notice to airline
India

AirAsia India sacks pilot Gaurav Taneja after his video alleging violations of safety regulations; DGCA issues notice to airline

On Sunday, the Directorate General of Civil Aviation (DGCA) sent a show cause notice to an AirAsia India executive over the allegations made by Taneja.