copyrightJet Airways's auction failure will work on Plan B
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| Jet Airways |
The crisis of the airline Jet Airways, which is a debt-ridden private sector, remains intact. In the current circumstances, it is almost certain that Jet Airways is going through the auction process. Jet Airways, which has come under the control of banks, is in the process of bidding. But it is not certain that banks will get success in the bidding process. This is the reason why the financial institutions lending to Jet Airways are exploring different ways of collecting the loans from the company. According to news agency PTI sources, besides the bidding process the lenders are also working on 'Plan B'.
According to sources, if the bidding process fails, the lenders are in favor of this solution outside the Code of Bankruptcy and Debt Refinance (IBC) code framework. They can prefer the option of recovery on the basis of existing guarantee and property. Actually, approval of the National Company Law Tribunal (NCLT) is necessary before the procedure is initiated under the IBC Code.
The solution will be linked to the market and in a timely manner. This is the reason why the option of resolving the matter outside the NCLT is being emphasized. This allows banks to get better value than other airports. Not only this, the lender is also looking at the option of raising funds through assets including 16 aircraft available with the airline.
Earlier, on Friday, sources had said that the lenders are actively working and they can not be held guilty for the current situation. The bank has been linked to the airline for the past nearly nine months after the cash loss and has been urging the management to prepare the plan for the solution.