Jet Airways Insolvency Case: Creditors Decide To Seek Fresh Bids

Lenders to Jet Airways (India) Ltd. have decided to seek fresh initial bids for the bankrupt airline, according to an exchange filing on Monday.

The grounded airline is undergoing insolvency proceedings at the National Company Law Tribunal and its Committee of Creditors are seeking a buyer to recover dues.

Earlier this month, the National Company Law Tribunal had directed the CoC to expedite their decision on seeking fresh Expressions of Interest in view of new interest being shown for the grounded airline.

Once a storied full-service carrier, Jet Airways stopped flying in April after it ran out of money for daily operations. The airline is undergoing resolution process under the Insolvency and Bankruptcy Code.

"... the CoC passed the resolution to issue fresh invitation of Expression of Interest for the corporate debtor in the e-voting concluded on December 22, 2019," the carrier’s filing said.

Synergy Group, the sole potential bidder for Jet Airways, had sought more time to take a decision on investing in the grounded airline. The tribunal had also approved extension of Jet Airways insolvency resolution period by 90 days.

On Monday, Jet Airways shares rose 4.99 percent to Rs 25.25 apiece on the NSE while the benchmark Nifty 50 declined 0.07 percent to end the day at 12,262.75 points.