Lenders Discussing Ways To Revive Jet Airways; Fund Infusion Likely Soon
Lenders to Jet Airways (India) Ltd. are discussing ways to revive the crisis-hit carrier and fresh funds are likely to be infused shortly, officials said on Tuesday.
Amid acute financial crunch crippling its operations, Jet Airways management is awaiting clarity on receiving fresh funds after which a decision would be taken on continuing operations.
“Discussions for reviving the airline are underway and nothing has been finalised as of now,” Punjab National Bank Managing Director and CEO Sunil Mehta told reporters.
Representatives of various lenders to Jet Airways are also understood to have discussed issues related to Jet Airways with Financial Services Secretary Rajiv Kumar.
Jet Airways has a debt burden of more than Rs 8,000 crore.
SBI Capital Markets has the mandate for Jet Airways sale on behalf of the State Bank of India-led consortium of the domestic lenders to the debt-ridden private carrier.
A senior government official said that funding for Jet Airways from lenders is likely to come through.
The board of the full service carrier, which is currently operating less than 10 aircraft, is meeting in Mumbai on Tuesday.
On Monday, lenders did not take a final decision on providing emergency funds to the cash-strapped carrier.
Another government official said that approaching the National Company Law Tribunal for Jet Airways is not an option at this stage. “Right now, the lenders are trying to resolve the issue by seeking bidders for investment. This is not the time for lenders to approach NCLT for resolution,” the official said.
Creditors can take a defaulting company to the NCLT for seeking approval for resolution under the Insolvency and Bankruptcy Code.
Earlier in the day, sources said Jet Airways founder Naresh Goyal has decided not to bid for acquiring stake in the cash-strapped airline.
Pursuant to a debt resolution plan approved by the airline’s board last month, SBI Capital Markets, on April 8, invited Expression of Interest from potential investors to buyout 75 percent stake in the airline.