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Deadline For Jet Airways Bid Likely to be Extended?

With only 4 bidders reportedly showing interest, deadline for JetAirways bidding likely to be extended.

Published
Business
1 min read
The Narendra Modi government has asked Tata Sons Ltd to help rescue cash-strapped Jet Airways, <a href="https://www.bloombergquint.com/global-economics/tata-said-to-have-been-asked-by-modi-to-explore-buying-jet-stake#gs.7q92Vz8">Bloomberg</a> reported quoting sources.
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With initial bids for insolvent Jet Airways set to end on 3 August, at least 4 potential bidders have shown interest in the airline carrier so far, reported Livemint. Quoting a source, the report said SBI Capital Markets has reached out to about 20 potential investors and out of these, only 4 have shown interest.

During a meeting on 1 August, Jet Airways’ committee of creditors (CoC) also reportedly decided to extend the deadline for bids if the airline failed to secure any bids by 3 August.
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The State Bank of India (SBI), meanwhile, has reportedly sanctioned Rs 10 crore as a part of the approved interim funding of 10 million dollars for the airline. Other banks are also in the process of approving the same, reported PTI.

Other crucial details discussed in the meeting included criteria for evaluating bids of the same amount and the issue of releasing one month salaries of employees as suggested by NCLT on 23 July. The lenders consortium, led by SBI, had approached the NCLT in July as they couldn’t find takers for the airline that has gone bankrupt.

PTI reported that State Bank has made a claim of Rs 1,644 crore, including cash credit inclusive of interest, term loans and bank guarantees. Yes Bank has claimed Rs 1,084 crore, followed by PNB's Rs 963 crore and IDBI Bank's Rs 594 crore.

(With inputs from PTI, Livemint)

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