ADVERTISEMENT

Lenders 'reasonably hopeful' of Jet stake sale success

Hours after denying a lifeline to Jet Airways, which suspended its operations for want of cash, the airline's lenders led by the State Bank of India on Thursday said they are "reasonably hopeful" that the stake sale process would succeed and determine a fair value of the enterprise.
 
"Lenders are reasonably hopeful that the bid process is likely to be successful in determining the fair value of the enterprise in a transparent manner." a statement said.
 
The official statement said the lenders after due deliberations decided that the best way forward for the survival of Jet Airways was to get the binding bids from potential investors who have shown expression of interest (EOI) and have been issued bid documents on April 16.
 
Late on Wednesday night, Jet Airways in a regulatory filing to BSE had announced temporary suspension of its domestic and international operations. The decision was taken by the airline as no emergency funding came from its lenders.
 
"Since no emergency funding from the lenders or any other source is forthcoming, the airline will not be able to pay for fuel and 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 airline said in its filing.
 
Over the last few weeks, the crisis-hit airline tried to secure interim funding to keep the business going but its request did not find favour with its lenders. 
 
Unable to meet expenses, the airline gradually scaled down its operations and was flying just 6-7 aircraft from the peak of 119 a few months back.
 
It finally shuttered down on Wednesday night, leaving its 16,000-plus employees in the lurch.
 
Saddled with debt and losses, the airline is unlikely to come back to its feet any time soon. The airline's total liabilities are said to be about Rs 20,000 crore which includes Rs 8,400 crore owed to banks.
 
IANS

(Our News Desk can be contacted at desk@netindian.in)

Did you like this story? Make a donation and help us to serve you better.
ADVERTISEMENT
 

Comments

Post new comment

The content of this field is kept private and will not be shown publicly.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd> <canvas>
  • Lines and paragraphs break automatically.

More information about formatting options

© Copyright 2012 NetIndian. All rights reserved. Republication or redistribution of NetIndian content, including by framing or similar means, is expressly prohibited without the prior written consent of NetIndian Media Corporation. Write to info[AT]netindian[DOT]in for permission to use content. Read detailed Terms of Use.