#Jet Airways lenders

[ganganews]

Lenders to Jet Airways Ltd have raised concerns about their investment, seeking clarity on the investor, Florian Fritsch

[new-haryanvi-ragni]

Jet Airways Insolvency: Jalan Kalrock Consortium Seek Time To Pay Rs 350 Crore To Lenders

[libord]

What is Corporate Debt Restructuring and How Does It Work?

Corporate debt restructuring is when a company that has taken on too much debt tries to reduce the amount it owes by changing the terms of the loans it has taken. This can involve negotiating with lenders to get better repayment terms, like lower interest rates or longer repayment periods, or even cancelling some of the debt altogether. The goal is to help the company get back on its feet financially so that it can continue to operate and pay its bills. It is like when you owe your friend some money, but you can't pay it all back right away, so you talk to your friend and work out a new plan to pay back the money over a longer period of time that is easier for you to manage.

Understanding Corporate Debt Restructuring

Corporate debt restructuring is when a company changes the terms of its existing debts to make it easier to repay. This is done by negotiating with creditors to reduce the amount of money owed, extend the repayment period, or reduce the interest rate. The goal is to help the company reduce its financial burden and avoid bankruptcy. It can involve forgiving some of the debt, converting some of the debt into equity in the company, or extending the repayment period. The process requires careful negotiation and planning and can help companies overcome financial difficulties and continue operating successfully.

Understanding Corporate Debt: Key Takeaway points

Here are some key takeaways regarding corporate debt restructuring:

Corporate debt restructuring is a process of renegotiating the terms of a company's debts to make it easier to repay.

The goal of corporate debt restructuring is to help the company reduce its financial burden and avoid bankruptcy.

Corporate debt restructuring may involve forgiving some of the debt, converting some of the debt into equity in the company, or extending the repayment period.

The process of corporate debt restructuring requires careful negotiation and planning, and may involve the assistance of financial professionals.

Corporate debt restructuring can be an effective way for companies to overcome financial difficulties and continue operating successfully. However, it is not always the best option, and bankruptcy may be necessary in some cases.

Corporate Debt Restructuring: Conclusion

Corporate Debt Restructuring is an important process that allows companies to reorganize their financial obligations and improve their cash flows. It is an alternative to bankruptcy that enables companies to negotiate with their creditors and arrive at a mutually beneficial solution.

Through the CDR mechanism, companies can prepare a restructuring plan that includes measures such as debt rescheduling, debt conversion, and equity infusion. This helps to ease the financial burden and improve the company's financial health.

However, the success of Corporate Debt Restructuring largely depends on various factors such as the company's financial position, market conditions, and creditor cooperation. It is crucial for companies to have a sustainable business model and a comprehensive restructuring plan to ensure long-term viability.

Overall, Corporate Debt Restructuring is a complex process that requires specialized expertise and experience. It is important for companies to work with professionals who can provide the necessary guidance and support to navigate the process successfully.

Corporate Debt Restructuring: An example from India

One of the prominent examples of Corporate Debt Restructuring in India is the case of the airline company, Jet Airways. In 2019, Jet Airways was facing severe financial troubles due to high debt, increased competition, and rising fuel prices. The company was unable to pay its debt and salaries to employees, and its operations had come to a halt.

As a result, the company approached its lenders for debt restructuring under the CDR mechanism. The lenders formed a Joint Lenders' Forum (JLF) and worked with Jet Airways to restructure its debt by converting a portion of its debt into equity and providing additional funding.

However, despite the efforts, Jet Airways was unable to revive its operations and went into bankruptcy in 2019. The case highlights the importance of timely debt restructuring and the need for a sustainable and viable business model to avoid bankruptcy.

Corporate Debt: Libord Advisors Finest service

Libord has extensive experience in the area of Corporate Debt Restructuring (CDR) and offers specialized services to clients at different stages of the CDR Scheme. We at Libord can prepare reports, restructuring schemes, and provide justification for considering cases under CDR. We are having knowledge about RBI guidelines and can carry out financial analysis to determine important ratios such as ROCE, DSCR, IRR, Cost of Finance, and others. Libord can also assess the viability of projects and make profitability projections, as well as provide details of the reliefs and concessions that may be available from various institutions and banks. Additionally, we can also carry out asset valuation to help with restructuring plans.

[warningsine]

BENGALURU, May 2 (Reuters) - Cash-strapped Indian airline Go First filed for bankruptcy on Tuesday, blaming "faulty" Pratt & Whitney engines for the grounding of about half its fleet.

The move marks the first major airline collapse in India since Jet Airways filed for bankruptcy in 2019, and underscores the fierce competition in a sector dominated by IndiGo and the recent merger of Air India and Vistara under the Tata conglomerate.

Go First's total debt to financial creditors was 65.21 billion rupees as of April 28, it said in a bankruptcy filing with the National Company Law Tribunal.

The company had not defaulted on any of those dues as of April 30, but had defaulted on payments to operational creditors, including 12.02 billion rupees to vendors and 26.60 billion rupees to aircraft lessors, it said in the filing.

In a statement, Go First said its filing followed a refusal by Pratt & Whitney, the exclusive engine supplier for the airline's Airbus A320neo aircraft fleet, to comply with an arbitration order to release spare leased engines that would have allowed the airline to return to full operations.

Grounded aircraft "due to Pratt & Whitney's faulty engines" ballooned from 7% of its fleet in December 2019 to 50% in December 2022, the airline said, costing it 108 billion rupees ($1.32 billion) in lost revenues and additional expenses.

Pratt & Whitney said in a statement to Reuters that it was "committed to the success of our airline customers, and we continue to prioritize delivery schedules for all customers."

"P&W is complying with the March 2023 arbitration ruling related to Go First. As this is now a matter of litigation, we will not comment further," it added.

In February, the boss of Raytheon Technologies (RTX.N), which owns Pratt & Whitney, acknowledged that its GTF engines had had reliability issues.

Pratt & Whitney has also been quoted in Indian media as saying it was affected by industry-wide supply chain pressures and that it expects those to ease later this year, which would support increased output of new and overhauled engines.

Analysts have said bigger rival IndiGo has been able to withstand the impact better, thanks to its larger fleet and a deeper pocket.

Go First, owned by the Wadia Group and formerly known as GoAir, said on its website that it had cancelled flights scheduled for May 3 to May 5 due to "operational reasons".

"The government of India has been assisting the airline in every possible manner," India's Civil Aviation Minister Jyotiraditya Scindia said in a statement. "The issue has also been taken up with the stakeholders involved."

The collapse could boost rival airlines as the industry tries to meet a surge in post-pandemic air travel.

"The sudden disruption in operations is likely to benefit other players and increase airfares due to supply constraint," wrote Jinesh Joshi, a research analyst with Prabhudas Lilladher.

SURPRISE MOVE

The move took Go First's lenders by surprise, two bankers aware of the matter told Reuters.

The lenders met Go First's management a few weeks ago, but no intimation was given, one of the bankers said. Lenders will meet soon to assess the situation and decide on a future course of action, they said.

"I am a little stunned to hear of them file for bankruptcy," said Mark Martin, CEO at aviation consulting firm Martin Consulting LLC. "I still feel that this might not be the end of Go First. This must be a vehicle and a means for somebody new to take over."

Go First's problems, which forced it to delay its planned $440 million IPO in 2021, led to an erosion in its market share to 6.9% in March from 8.4% in January, latest data from the Indian aviation regulator showed.

The Wadia Group had been reported to be in talks to either sell its majority stake or completely exit its shareholding. Wadia Group did not respond to an email seeking comment.

Go First said the groundings had driven some lessors to "repossess aircraft, draw down letters of credit and notify further withdrawal of aircraft."

Employees were caught unaware as they heard about the halt in daily operations first from local media, according to three pilots who did not want to be named. They have been receiving their salaries with a delay for the past few months, the pilots added.

"We understand that this news is likely to be distressing, and we remain committed to offer our support to all of you during this difficult time," Go First later said in a email to employees.

($1 = 81.7420 Indian rupees)

[theechudar]

NCLT Allows Transfer of Airline's Ownership to Jalan-Kalrock Consortium

NCLT Allows Transfer of Airline’s Ownership to Jalan-Kalrock Consortium

Last Updated: January 13, 2023, 15:41 IST Kalrock Capital and UAE-based businessman Murari Lal Jalan were selected by lenders to revive the grounded airline in October 2020. Shares of Jet Airways on Friday surged 5 per cent after the National Company Law Tribunal has allowed the transfer of ownership of the airline Shares of Jet Airways on Friday surged 5 per cent after the National Company…

[znewstech]

Sanjiv Kapoor To Remain CEO-Designate Of Jet Airways

Sanjiv Kapoor To Remain CEO-Designate Of Jet Airways

The consortium had last year announced the appointment of Sanjiv Kapoor as the CEO Mumbai: Grounded carrier Jet Airways on Monday said Sanjiv Kapoor remains the CEO-designate of the company till the airline’s ownership is transferred to the consortium by the lenders. Earlier CNBCTV18 reported that the head of the Jet Airways management committee and erstwhile Resolution Professional Ashish…

[newswireml]

How the relationship between Jet Airways’ new owners and lenders soured#relationship #Jet #Airways #owners #lenders #soured

How the relationship between Jet Airways’ new owners and lenders soured#relationship #Jet #Airways #owners #lenders #soured

There was much euphoria when the Mumbai Bench of the National Company Law Tribunal (NCLT) approved the resolution plan submitted by the Kalrock Capital and Murari Lal Jalan consortium (JKC) to acquire the debt-laden Jet Airways in June 2021. The potential new owners unveiled the Jet 2.0 plan promising to start operations of the airline by 2022. In April this year, a new management under veteran…

[squarwell-breakingnews]

Jet Airways revival hits new snag as banks push back on funding - Times of India

Jet Airways revival hits new snag as banks push back on funding – Times of India

NEW DELHI: Lenders to bankrupt Jet Airways India Ltd. are resisting a court-approved resolution plan, further delaying the former No. 1 private airline’s return to the skies, according to people familiar with the matter and email communications seen by Bloomberg News. The primary dispute is about whether the new owners of Jet Airways need to pay more money into the pension funds of ex-employees,…

[publictaknews]

Jet Airways' comeback plan hits roadblock over ex-staff's $30 million demand

Jet Airways’ comeback plan hits roadblock over ex-staff’s $30 million demand

Lenders to bankrupt Jet Airways India Ltd are resisting a court-approved resolution plan, according to people familiar with the matter and email communications seen by Bloomberg News, further delaying the former No. 1 private airline’s return to the skies. The primary dispute is about whether Jet Airways’ new owners need to contribute more money to former employees’ pension funds, said the…

[newsaryavart]

Jet Airways के दिवालिया समाधान पेशेवरों ने चौथी बार नए सिरे से मांगे रुचि पत्र, 28 मई है अंतिम तिथि

Jet Airways के दिवालिया समाधान पेशेवरों ने चौथी बार नए सिरे से मांगे रुचि पत्र, 28 मई है अंतिम तिथि

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Photo:GOOGLE

Jet Airways Lenders to invite fresh expression of interest

नई दिल्‍ली।जेट एयरवेज के दिवालिया समाधान पेशेवरों ने बंद हो चुकी इस विमानन कंपनी के लिए बुधवार को नए सिरे से रुचि पत्र (ईओआई) मांगे हैं। पिछले साल बंद हो चुकी जेट एयरवेज के लिए चौथी बार ईओआई को आमंत्रित किया गया है। एक सार्वजनिक दस्तावेज के मुताबिक बोली दस्तावेज जमा करने की अंतिम तिथि 28 मई है और संभावित समाधान…

[releasesoon]

Jet Airways' lenders may acquire substantial stake till new promoters come in: Report

Jet Airways’ lenders may acquire substantial stake till new promoters come in: Report

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New Delhi: Lenders of Jet Airways are likely to pick up a substantial stake in the debt-laden airline till a new promoter is roped in, sources said.

The process of getting a new promoter on board is likely to take another two to three months and once that happens, the banks would offload their stakes, they added.

The State Bank of India-led…

[weelectronicstudentreviewstuff]

Jet Airways Lenders Likely to Invite Fresh Bids, Say Sources

Jet Airways Lenders Likely to Invite Fresh Bids, Say Sources

Jet Airways employees sit at the front desk at its headquarters in Mumbai. (Image: Reuters)

The committee of creditors (CoC) of Jet Airways is likely to come out with a revised EoI for the stake sale in the defunct airline on Wednesday, said a source.

PTI Mumbai

Last Updated: May 12, 2020, 11:54 PM IST

Jet Airways lenders’ have decided to invite fresh expression of…

[monicasharmalove]

Jet lenders plan to sell 75% stake, bidder's net worth should be Rs 1000 cr

Company News

Jet Airways India Ltd.’s lenders invited initial bids to buy as much as 75 percent of the debt-laden carrier, starting a process that will determine the future of India’s oldest surviving private airline.

Potential buyers must submit their interest by April 10, State Bank of India Ltd., the lead creditor, said in a document Monday. A strategic bidder should have a net worth of at least Rs 1,000 crore ($144 million) in the preceding financial year, or at least three years of experience in the airline business.

The airline is credited with successfully breaking the monopoly of state-run Air India Ltd. and was once India’s second-biggest carrier, but its fleet has dwindled to 26 planes from 124 as recently as January. Accumulated losses in nine of the past 11 years have caused Jet Airways to delay payments to banks, lessors and employees, while its founder Naresh Goyal was forced to cede control of the carrier.

Jet Airways, part-owned by Abu Dhabi’s Etihad Airways PJSC, needs Rs 8500 crore to get back on its feet after a fare war by budget airlines wiped out profits and it racked up debt of more than $1 billion.

The fate of Jet Airways is crucial to the legacy of Indian Prime Minister Narendra Modi as he faces an election that begins April 11 after holding power for the last five years. While he remains the favorite in the polls, his party has faced setbacks of late and he has been criticized for not living up to a key election promise to create 10 million new jobs a year. A collapse of Jet Airways, with 23,000 employees, could further dent his credentials.

Consortiums submitting bids should have no more than three members, with each holding a share of no less than 15 percent, according to Monday’s document.

After qualified bidders are selected, they will be provided access to the company’s data and the bid document...Read More

[squarwell-breakingnews]

Jet Airways sends many staffers on leave without pay; implements salary cuts - Times of India

Jet Airways sends many staffers on leave without pay; implements salary cuts – Times of India

NEW DELHI: The stalled Jet Airways 2.0 will send some of its 230 employees on leave without pay and enforce pay cut of upto 50% for many others starting December 1, 2022. The Jalan Kalrock Consortium (JKC), that had won the bid to revive the grounded airline under India’s bankruptcy law, is yet to make that happen due to disagreement over who — lenders or the consortia — needs to share past…

[hrthrive2018-blog]

Not Cool Man!

Shares of India’s second-biggest airline Jet Airways plunged over 5 per cent on 22nd October, 2018 amid reports of the firm being in a financial soup.

The private airline is trimming its workforce and operations further as it battles its worst financial crisis.

At least 15 people at manager or general manager level in departments such as engineering, security and sales have been asked to leave in October. The airline has grounded eight of its planes in Chennai and Mumbai airports

The country’s biggest lender State Bank of India said earlier this year that the airline was on its stressed loans list, which was denied by Jet.

Layoffs are often seen having a negative impact on the employees.  These negative emotions ripple through family relationships, diverting energy that's better spent on a job search. However, even those lucky enough to get another job often must work for lower wages, creating long-term hardships that take years to overcome.

CASE IN HAND

● Samuel has been a loyal employee of Jet Airways for a period of 10 years now. He has served the finance department and has been heading it.

● Shanaya has been an employee of Jet Airways for a period of 7 years now. She has diligently contributed as the Marketing Manager in the company.

● Reshma being the Line Manger has also contributed in the company for 7 years now.

● Raman has been a loyal employee in the Operations department for 7 years now.

Due to the current financial crisis, the company has decided to lay off all 4 of them.

TASK IN HAND

Laying off is a very sensitive step and needs to be dealt accordingly. Hence, you as the HR Manager of Jet Airways have to send a layoff WhatsApp voice note (only 1) to these employees according to the table attached above based on the PVN numbers.

(Mention the PVN number before the pitch)

Samuel – 8799982999

Shanaya – 8762016746

Reshma – 9582264091

Raman – 9702624693

Submission Details-

Time- Before 10:30 pm sharp

Find the whatsapp numbers mentioned in the picture attached above.

P.S – Remember they have been extremely loyal and hardworking, BE REASONABLE!

[amstrow1]

Amstrow revel in in business plane, personal jets, Aircraft Leasing Companies, and economic structuring work. Our revel in comes from helping from the attitude of the lessor, lender, and marketing consultant to airways in diverse plane financing transactions. We have labored throughout a huge variety of plane sorts and investor systems encompassing many exceptional geographic jurisdictions.