Jet Airways lenders set to invite EoI from investors

Lenders of Jet Airways, which had suspended operations in April, are expected to float expression of interest for the airline by early next week.

The decision was taken after a meeting of the lenders, led by State Bank of India, on July 16.

"The notice for expression of interest could be sent out by end of this week, or early next," said an executive from the industry.

The lenders have also decided to raise priority debt of up to $20 million. "This will help meet the costs of running Jet Airways till the insolvency process is completed. Some of the offices have to run, and money is also needed to keep systems running and to pay for auditing," said the executive cited above.

The lenders had moved the National Company Law Tribunal in June after the bidding process for Jet Airways fell apart. Etihad Airways and the Hinduja Group were the only interested suitors, but their conditions were not met by the banks.

Resolution professional had later called for submission of claims by financial and operational creditors. Employees of Jet Airways had also submitted claims for their unpaid salary. But those by employees of JetLite, the low-cost carrier of Jet Airways, were not accepted.

The resolution professional is expected to make an announcement on the claims, especially on those that have been accepted, later this week.

Till now, only one suitor has confirmed interest in the insolvency process. A group of Jet Airways employees has joined hands with the London-based AdiGro Aviation to form a consortium and will bid for 75 percent stake in the airline.

The airline had stopped operations in April after running out of money. It woes banks more than Rs 8,000 crore and its total liability is over Rs 20,000 crore.