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12 December 2019

Jet Airways’ creditors agree to delay revamp plan

Lenders, including State Bank of India and Punjab National Bank, have claimed INR 82.3 billion, while other creditors, like employees and lessors, are seeking INR 64 billion from the airline, which is 24 per cent owned by Abu Dhabi’s Etihad Airways.


Creditors of Jet Airways India have agreed to extend the deadline for submission of a resolution plan for the grounded Indian airline’s INR146 billion ($2.1 billion) of debt as the sole bidder for the company baulks at making a binding offer, reported Bloomberg.

The deadline for submission of a resolution plan for the carrier may be extended beyond 16 December 2019 as Synergy Group will not make a binding offer for Jet Airways till it gets clarity from India’s government on the validity of the carrier’s defunct flying slots.

These slots were reallocated to other airlines after Jet Airways suspended its operations in April 2019.

The Mumbai-based airline, which was once the country’s largest carrier by market value, fell victim to a cut-throat price war initiated by a slew of budget carriers and eventually defaulted to banks, staff and lessors.

Synergy also wants time to assess the cost of re-acquiring Jet’s expired Heathrow landing rights, without which the carrier would be stripped of its most lucrative route. Creditors have already sought the approval of the National Company Law Tribunal for a 90-day extension to the carrier’s bankruptcy process, exchange filings show.


RELATED STORIES: Jet Airways State Bank of India Punjab National Bank Etihad Airways





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