Jet Airways crisis: Resolution professional invites bids by August 3 to sell airline's assets

The resolution professional (RP) invited expressions of interest (EoIs) to sell the assets of grounded Jet Airways. Interested parties have been asked to submit their bids by August 3.

In an advertisement posted on the Jet Airways website as well as newspapers, the airline's RP Ashish Chhawchharia set August 6 as the date of issue of provisional list of prospective resolution applicants. Objections must be submitted by August 11.

After receiving the objections, the final list of prospective resolution applicants would be issued on August 14. These applicants must submit their resolution plans by September 5, the advertisement said. The estimated date for submission for resolution plan by the RP to the National Company Law Tribunal (NCLT) for approval is September 20.

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The Jet Airways assets up for sale include 14 aircraft, including 10 Boeing planes, 49 per cent stake in Jet Privilege and a few buildings. The airline's lenders have also listed spares, slots and routes as the assets.

The debt-laden airline has liabilities over Rs 36,000 crore. This includes more than Rs 10,000 crore of vendor dues, Rs 8,500 crore along with interest owed to the lenders, over Rs 3,000 crore in salary dues, and more than Rs 13,500 crore in accumulated losses over the past three years.

The next hearing in Jet Airways' insolvency case is scheduled on July 23. RP Chhawchharia will also submit his progress report in the matter on this date.

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Jet Airways had grounded its operations on April 17 after running out of funds to stay afloat. The lenders, who were in control of the airline's board, had invited bids from strategic and financial investors to sell between 31.2 per cent and 75 per cent stake in the airline.

Four bidders have submitted non-binding bids for the stake sale in April, whereas Etihad Airways, which owns 24 per cent stake in Jet Airways, had submitted a conditional bid. However, none of the bidders moved forward to take control of the embattled carrier.

Following this, the lenders took the airline to NCLT on June 17 to recover their dues. Ashish Chhawchharia of Grant Thornton was named the resolution professional in the insolvency case.

Edited by Vivek Punj