Relief for Jet Airways! There are parties interested in buying stake after all
BusinessToday.In April 11, 2019
Jet Airways is said to have received Expression of Interest (EOI) from four companies interested in buying a stake in the beleaguered airline as the lenders to cash-strapped airline deferred the Wednesday (April 10) deadline for submitting initial bids by two days to Friday (April 12).
The four firms- Etihad Airways PJSC, National Investment and Infrastructure Fund Ltd (NIIF) and private equity firms TPG Capital and Indigo Partners have expressed interest in picking up stake in Jet Airways.
"The lenders are currently waiting for EoIs from Air Canada and Delta Airlines," a source told Livemint adding that the initial bids from these two airlines are expected in the next two days.
SBI Capital Markets which is the advisor to the consortium of lenders to Jet Airways and issued the EOI document on April 8 said in a statement, "As part of the process, we are in receipt of some EoIs and some more persons have expressed desire to participate if additional time is provided. Accordingly, in order to allow better participation in the process, the domestic lenders have agreed for extension timeline for submission of Expression of Interest which has been updated and made available on the websites."
According to the document issued to interested bidders, they would also have to provide solvency certificates before they submit their initial bids, the report said.
As part of the resolution plan for debt-laden Jet Airways, the lenders are looking to keep the airline afloat through the fresh infusion of funds to stave off potential bankruptcy.
Meanwhile, Indian Oil which had stopped fuel supply to jet earlier on Wednesday restored the service after assurances from the airline management.
The financial crunch has also forced the airline to delay salaries to employees and payments to banks, aircraft lessors and vendors. It has massively reduced its operations from its main hub Mumbai to just about 32 flights.