NEW DELHI: The Committee of Creditors (CoC) of bankrupt airline Jet Airways on Friday approved an interim funding of about $10 million (Rs 69 crore) into the airline, which will be used to meet expenses related to the corporate insolvency resolution process and others.
The airline’s CoC, led by the State Bank of India (SBI), had also voted on other resolutions that include calling for expressions of interest for the airline and admission of claims by creditors.
“Resolution to raise interim finance and key terms for the eligibility criteria for prospective resolution applicants have also been approved by the requisite majority of voting share,” the company said in a regulatory filing. It is expected that Interim Resolution Professional Ashish Chhawchharia of Grant Thornton plans to open bidding for the airline on Saturday, which is likely to remain open for 15 days or more.
While not much is known about the key terms of the eligibility criteria for bidders, initial reports say bidders will need to have a net worth of Rs 1,000 crore to file their interest.Once India’s largest airline, Jet Airways has not flown since April 18 this year, when it halted operations owing to financial crisis. After a failed attempt by the SBI’s investment banking arm SBI Caps to find an investor for the airline, its lenders took the airline to bankruptcy court.Chhawchharia on Thursday said he has received claims for dues worth Rs 24,887 crore from 16,643 applications, of which Rs 8,462 crore claims were from financial creditors.
Jet’s Interim Resolution Professional plans to open bidding for the airline on Saturday, which is likely to be open for 15 days or more. Initial reports say bidders would need to have a net worth of I1,000 crore to file their interest.