The debt resolution process of Jet Airways suffered a setback on Wednesday with many prospective investors staying away from submitting expression of interest (EoI) before the deadline.
SBI Capital Markets Ltd.(SBI Caps), acting on behalf of the lenders, extended the deadline to April 12.
The last date for receipt of EoI was April 10, 2019.
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It is understood that Etihad Airways, which was keen to participate in the bidding process, had sought more clarification and time to secure board approval, resulting in the extension of the deadline, according to people in the know of the development.
“As part of the process, we are in receipt of some EOIs and some more persons have expressed desire to participate if additional time is provided. Accordingly, to allow better participation in the process, the domestic lenders have agreed for extension timeline for submission of EoIs,” SBI Caps said in a statement.
Earlier, the objective of the exercise was ‘settlement of the obligations’ of the company in relation to existing facilities. This has been changed to “restructuring of the existing facilities and infusion of funds by way of loans or acquisition/subscription of up to 75% of equity share capital of the company.”
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SBI Caps has also made it clear that binding bids must be submitted by April 30, 2019. Meanwhile banks refused to release the much-needed funds for sustaining the operations of the airline.
IOC stops ATF supply
Indian Oil Corporation (IOC) resumed the supply of aviation turbine fuel (ATF) to Jet Airways after the airline made some payment. “Supply that was stopped at 3 p.m. was resumed at around 9 p.m. after some payments were made, ending the six-hour stoppage,” an IOC official said.
Sources said its aircraft at Mumbai, Delhi, Hyderabad and Bengaluru were affected. “Refuelling has begun after 8.30 p.m.” a senior airline official said.