Jet RP invites EoIs by 3 August to sell meager assets

Mumbai: The resolution professional (RP) of Jet Airways called for expressions of interest (EoIs) to sell the grounded airline’s meager assets by 3 August.

In an advertisement posted on the airline’s website and in newspapers, the RP, Ashish Chhawchharia, appointed by Jet Airways’ lenders, has set a deadline of 3 August for receipt of EoIs, 6 August as the date of issue of provisional list of prospective resolution applicants, and 11 August as the last date of submission of objections.

The advertisement stated that on 14 August, final list of prospective resolution applicants will be issued. The final date for submission of resolution plans of these applicants will be 5 September, it added.

The estimated date for the submission of resolution plan by the RP to the National Company Law Tribunal for approval is 20 September.

The airline’s assets include 14 aircraft including 10 Boeing planes — down from 124 before the grounding — and 49 per cent stake in Jet Privilege and a few buildings. Its liabilities are over Rs 36,000 crore, including 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 of the past three years.

The lenders also list spares, slots and routes as the assets of the Naresh Goyal-promoted airline which operated its last flight on 17 April. The next hearing on the insolvency case and RP’s progress report is on 23 July. The airline was sent to the NCLT on June 17, to recover loans of Rs 8,500 crore.

On 20 June, NCLT admitted the insolvency petition filed by the lenders’ consortium led by State Bank against Jet Airways. Before it was sent to the NCLT, the banks, which own half of the shares in the airline, had sought expressions of interest from both strategic and financial investors to sell between 31.2 and 75 percent stake.

The bankers received four non-binding EoIs in April, while Etihad Airways, which owns 24 per cent in the carrier, had submitted a conditional bid. But none of the bidders moved forward.