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Jet Airways extends deadline for bid submissions to Aug 10

The revised deadline for submission is now on August 10 instead of August 3.

, ET Bureau|
Last Updated: Aug 03, 2019, 05.09 PM IST|Original: Aug 03, 2019, 05.09 PM IST
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Defunct Jet Airways extended the deadline for submitting bids as interested applicants sought for additional time with the earlier cut-off date ending Saturday.

The revised deadline for submission is now on August 10 instead of August 3.

“On basis of requests received from prima-facie credible interested Resolution Applicants for some additional time, the deadline for submission of EOI is being provisionally extended (subject to formal ratification by the Committee of Creditors),” said Ashish Chhawchharia, the Resolution Professional (RP) in note on Saturday.

Speculations were rife that potential bidders including Etihad Airways and the Hinduja Group were preferring for an extended deadline. They were busy doing due diligence before making their formal interest to own the aviation company, which defaulted bank loans worth over Rs 11,000 crore.

The RP released the invitation for bids, known as Expression of Interest (“EOI”) in the ongoing corporate insolvency resolution process of Jet Airways (India) Limited, on July 20. A resolution professional is key person, appointed by the court during any insolvency proceedings.

National Company Law Tribunal admitted Jet Airways for bankruptcy proceedings on June 20 after the consortium of lenders failed to resolve the loan default. The company, which was running out of cash stopped its operations in April leaving thousands of its employees jobless.

The proposed extension, according Chhawchharia is to ensure the objectives of the IBC are achieved and fetching maximise the value of the assets of the corporate debtor so that it achieves a better outcome for all stakeholders in this fast-track process.

“This is to bring to the attention of all interested resolution applicants that the revised deadline for submission stands at 4:00pm (India time) on August 10, 2019,” he said.

Earlier in the month, the Ministry of Corporate Affairs ordered an investigation into Jet Airways over alleged mismanagement of funds.

The authorities had stopped the airline’s former chairman - Naresh Goyal from travelling abroad.
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