Etihad, Hinduja in talks for Jet Airways insolvency bid

Etihad Airways has contacted the lenders to revive the non-functioning airlines, Jet Airways, weeks after the National Company Law Tribunal (NCLT) has approved the corporate insolvency resolution process (CIRP) against the Jet Airways, reported by Economic Times.

While Etihad has shown interest in participating in the CIRP of Jet, lenders have asked them to look for a majority Indian partner and make a formal bid that will be finally scrutinized and approved by NCLT.

Etihad and The Hinduja Group is in discussions to prepare a formal bid for Jet Airways.

The plea filed by State Bank of India (SBI) to start the insolvency process against Jet was admitted by NCLT on June 20 and committee of creditors (CoC) is expected to be formed by July 16.

In the first meeting, CoC is expected to scrutinize the first status report on Jet submitted by RP along with issues of inviting fresh expressions of interest for the airline.

Jet Airways has a debt of approximately Rs 8,000 crore with financial creditors. In the plea filed by SBI, it is mentioned that the outstanding working capital of the airline is worth over Rs 460 crore with the bank.

The matter is under the jurisdiction of NCLT Mumbai that has ordered to resolve the issue within 90 days as Jet Airways insolvency is a matter of “national importance”.