Categories: Business

Jet Airways insolvency solutions professionals seek fresh letter of interest for fourth time, May 28 deadline

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Jet Airways Lenders to invite fresh expression of interest

new Delhi. Jet Airways bankrupt settlement professionals have on Wednesday sought fresh letter of interest (EOI) for the shuttered airline. EOI has been invited for the fourth time for Jet Airways, which was closed last year. According to a public document, the last date for submission of bid documents is 28 May and the final list of potential solution applicants will be released on 10 June.

The decision to issue fresh EOIs was taken in the recently held meeting of the Committee of Lenders (COC). The COC discussed the future of the airline last week. This was the 11th meeting of the COC. In March this year, the National Company Law Tribunal (NCLT) allowed the aviation company's corporate insolvency resolution process to be extended for 90 days.

The solution professionals of the airlines requested NCLT to extend the insolvency process by 90 days if no bidders were found. The COC set a new deadline of 10 March for bidding on 18 February. However, it was further delayed. The cash-strapped airline had ceased operations in April 2019.

The company owes banks more than Rs 8,000 crore. Jet Airways has total liabilities of over Rs 26,000 crore, with vendors owing more than Rs 10,000 crore, arrears of Rs 8,500 crore including interest from lenders and over Rs 3,000 crore as salary.

This post was published on May 13, 2020 1:26 pm

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