Grounded airlines Jet Airways’ lenders on Thursday said they were “reasonably hopeful” that the bidding process will be able to determine “fair value of the enterprise in a transparent manner”. On Monday, the airline’s lenders, led by State Bank of India, failed to arrive at a consensus on its plea for emergency funding.
The debt-ridden airline on Wednesday informed the stock exchanges, the Directorate General of Civil Aviation and the Ministries of Civil Aviation and Finance and other government institutions about its decision to suspend all its operations, domestic as well as international.
“The lenders after due deliberations decided that the best way forward for the survival of Jet Airways is to get the binding bids from potential investors who have expressed EOI [expressions of interest] and have been issued bid documents on 16th April,” the lenders said in a statement on Thursday. “Lenders are reasonably hopeful that the bid process is likely to be successful in determining fair value of the enterprise in a transparent manner.”
The Ministry of Civil Aviation on Wednesday said it will support the resolution process within the existing regulatory framework. The ministry said the DGCA and other regulators are monitoring the situation carefully to ensure that all existing rules regarding refunds, cancellations, and alternate bookings are followed strictly.