Banks Expedite Sale Process of Jet Airways
Amid uncertainty over future of Jet Airways, bids for selling stake in the company would be invited on 6th April and other options would be explored, in case the stake sale efforts does not result in
Jet Airways is under a huge debt of more than Rs 8,000 crore. State Bank of India (SBI) is the lead lender to Jet Airways. Due to the company’s severe financial crisis, the Jet Airways founder Naresh Goyal and his wife Anita Goyal quit the board. Naresh Goyal also carried to all the terms and conditions laid down by the lender to pay back the loans.
Their financial condition has forced the airlines to ground aircraft, cancel flights and delayed payment of salaries, including to pilots. Jet Airways is currently operating only 26 planes out of the total 119 planes. The company has not paid the employees salary for the month of March. The employees will be updated regarding the status of the payment by 9th April. The pilots had initially said that if they were not paid by 1st April, they would stop flying. However the pilots have postponed the deadline to 15th April.
At a meeting of all the lenders in Mumbai, the current situation of the company was assessed. They have now decided to invite investors who are interested in buying a share in the company. The company’s future depends on the interest shown by various investors. They will be invited to submit bids by 6th April 2019. The lenders will have to look at other options, if the sale is not satisfactory.