Jet Airways lenders to invite preliminary bids on April 6

A day after Jet Airways deferred the March salaries of its employees, the airline’s management, lenders and government officials took stock of the situation on Thursday, holding series of meetings in the national capital.
Earlier during the day, the consortium of lenders led by State Bank of India (SBI) met the civil aviation secretary, updating him on the plans of action. During the afternoon, the lenders met Jet Airways CEO Vinay Dube to discuss the mode and period of funds infusion, which is likely to be made in trenches, the sources said.
Jet Airways’s lenders, in a cautiously worded statement issued late in the evening, said, “The lenders intend to pursue the Bank-Led Resolution Plan for sale of stake in the company in a time-bound manner under the present legal and regulatory framework and intend to invite Expressions of Interest (EoI).”

The lenders added that EoIs will be invited on April 6 and will need to be submitted by April 9. They also said that they are cognizant that the outcome of the efforts will depend on the interest shown by the parties in the sale of stake in the company.
“Whilst all efforts will be made for the stake sale by the lenders, other options may be considered by the lenders should these efforts not result in an acceptable outcome” the statement continued.
On March 25, Jet Airways’s Board had approved a resolution plan formulated by SBI-led domestic lenders, under which they had agreed to infuse an emergency funding of Rs 1,500 crore into the airline, and convert the same into equity worth 50.1% for a notional value of just Rs 1 each share.

However, the funds are yet to be disbursed as legal formalities are being worked out.
Civil aviation secretary Pradeep Singh Kharola said in a media interaction in Delhi on Thursday the ministry will see what is to be done of international flying if the number of Jet Airways aircraft in operations fall below 20. An airline is allowed to fly internationally only if it has at least 20 aircraft under its fleet. Jet is currently flying 26 aircraft.
Meanwhile, Jet Airways faced more headwinds on Thursday. There were reports that oil companies had stopped supplying jet fuel to the airline at Delhi airport and it was resumed only after the airline’s management assured them of the payments.

Further, Avolon, one of the world’s biggest aircraft lessors, has applied with aviation regulator Directorate General of Civil Aviation for de-registration of two of its aircraft currently under the possession of Jet Airways. Sources said the earlier groundings of planes by Jet Airways have been on consensual terms.