Lenders of Jet Airways are in favour of a resolution outside the insolvency law framework in case the ongoing bidding process fails to take off, sources said. Running into debt of more than £850 million, Jet Airways has shut down operations temporarily after lenders decided against extending emergency funds for its survival. SBI, the lead lender of the seven-member consortium of domestic banks that have extended loans to the airline, has started the bidding process for stake sale in the carrier and clarity about potential bidders would emerge next month.
While lenders are “reasonably hopeful” of a successful bidding process, sources said banks are working on a plan B in case things don’t progress as expected. If the bidding process fails, lenders would favour a resolution for the debt-ridden Jet outside the Insolvency and Bankruptcy Code (IBC) framework, sources said. Recovery on the basis of existing security and tangible assets would be a preferred option, they added.
Under the Code, the National Company Law Tribunal's (NCLT) approval is required for initiating the process, wherein the resolution would be market-linked and time-bound. Outside the NCLT would be a better option as far as plan B is concerned, sources said, adding that then banks would realise better value from the aircraft and other tangible assets owned by Jet Airways.
Employees get job offers via tweets
Meanwhile, small and large businessmen have lend a hand to stranded Jet employees as they began to post job offers. Almost 22,000 Jet employees are at risk of losing their livelihood as the beleaguered airline is facing headwinds on the funding front, forcing the airline to ground its operations. While SpiceJet CMD Ajay Singh has offered jobs to 100 pilots, over 200 cabin crew and more than 200 technical and airport staff, a publishing company owner from Chennai offered to recruit two Jet employees to man his customer support functions. Others included a PR firm and a modeling agency. Singh said, “As we expand and grow, we are giving first preference to those who have recently lost their jobs due to the unfortunate closure of Jet Airways.”
PR professional Amith Prabhu tweeted, “Happy to offer up to 10 @jetairways staff looking for an alternative career, an interest-free education loan to do full-time postgraduate programme at @SCoReInd that culminates with a job in public relations. If you know someone connect them to @hemantgaule or me for #PRSchool.” He added, “We will make them take a basic written test and have an interview. Graduate in any discipline may apply.”
A developing hashtag #Letshelpjetstaff has been started for entrepreneurs to post opportunities for the airline's staff. Other calls for jobs include tweets from an RJ Indira Rangarajan who wants to enrol Jet employees as content writers, Rjs in her organisation Mirchi Love, a channel of Radio Mirchi, which is part of the Times Group. D Devjani from modelling company I-GLAM is calling for aspiring models from among Jet Airways staff to apply to their organisation.
