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Lenders discussing ways to revive Jet Airways... fund infusion likely soon

Lenders discussing ways to revive Jet Airways... fund infusion likely soon

New Delhi: Lenders to Jet Airways are talking about ways to restore the crisis-hit carrier and new funds are likely to be infused shortly, officials said on Tuesday.

Amid acute financial crunch crippling its operations, Jet Airways management is awaiting clarity on receiving new funds after which a decision would be taken on continuing operations.

"Discussions for reviving the airline are underway, and nothing has been finalised as of now," Punjab National Bank Managing Director and CEO Sunil Mehta told reporters here.

Representatives of various lenders to Jet Airways are also understood to have discussed issues related to Jet Airways with Financial Services Secretary Rajiv Kumar.

Jet Airways has a debt burden of more than Rs 8,000 crore.

SBI Capital Markets has the mandate for Jet Airways sale on behalf of the SBI-led consortium of the domestic lenders to the debt-ridden private carrier.

A senior government official said that funding for Jet Airways from lenders is likely to come through.

The board of the full-service carrier, which is currently operating less than ten aircraft, met in Mumbai on Tuesday.

On Monday, lenders did not take a final decision on providing emergency funds to the cash-strapped carrier.

Another government official said that approaching the National Company Law Tribunal (NCLT) for Jet Airways is not an option at this stage.

"Right now, the lenders are trying to resolve the issue by seeking bidders for investment. This is not the time for lenders to approach NCLT for resolution," the official said.

Creditors can take a defaulting company to the NCLT for seeking approval for resolution under the Insolvency and Bankruptcy Code (IBC).

Earlier in the day, sources said Jet Airways founder Naresh Goyal has decided not to bid for acquiring a stake in the cash-strapped airline.

MPOST BUREAU

MPOST BUREAU

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