Jet Airways lenders ‘reasonably hopeful’ of successful bids for grounded airlinehttps://indianexpress.com/article/business/jet-airways-services-suspended-emergency-funding-debt-lenders-5681418/

Jet Airways lenders ‘reasonably hopeful’ of successful bids for grounded airline

In a statement released on Thursday, the lenders said, "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."

jet airways, jet airways lenders, jet airways debt, jet airways financial emergency, jet airways emergency funding, jet airways operations stopped
On Wednesday, Jet Airways, once India’s largest private airline, decided to temporarily suspend operations as a consortium of lenders refused to consider extending emergency funding of Rs 983 crore to keep the airline flying. (Reuters)

Lenders to Jet Airways are “reasonably hopeful” that the binding process for the grounded airline, which announced to temporarily suspend operations, will end successfully.

In a statement released on Thursday, the lenders said, “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.”

Also read | Jet Airways staffers want govt to extend financial assistance

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

Advertising

On Wednesday, Jet Airways, once India’s largest private airline, decided to temporarily suspend operations as a consortium of lenders refused to consider extending emergency funding of Rs 983 crore to keep the airline flying. The airline, which started operations nearly 25 years ago, said it would hence not be able to pay for fuel or other critical services to keep the operations going. “Consequently, with immediate effect, Jet Airways is compelled to cancel all its international and domestic flights. The last flight will operate today (Wednesday),” it said in a stock exchange filing Wednesday.

Also read | Airlines begin race to fill gap left by Jet Airways as employees scramble for new jobs

The closure of the airline’s operations has rendered around 16,500-plus employees including hundreds of pilots, who were not being paid salaries for several months, virtually jobless. In a mail to employees, Jet Airways CEO Vinay Dube said, “We don’t have an answer today to the very important question of what happens to us employees during the sale process.” But he asked them to “keep doing their job as best as possible”.