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IOC restores fuel supply to debt-laden Jet Airways

IOC has resumed fuel supply to debt-laden airline Jet Airways that it had suspended earlier in the day after the airline had failed to clear past dues

IOC restores fuel supply to debt-laden Jet Airways
IOC restores fuel supply to debt-laden Jet Airways

Mumbai: Indian Oil Corporation (IOC) has resumed fuel supply to debt-laden airline Jet Airways that it had suspended earlier in the day after the airline had failed to clear the oil marketing company's (OMC) past dues. Sources said that fuel supply to Jet was halted to the airline from 12 pm on Friday. However, the PSU restored fuel supply after the airline assured that its payments will be cleared.

Jet Airways has not yet responded to an email seeking comment on the matter.

Lenders set to invite bids for stake sale

As uncertainty clouds Jet's future, the consortium of lenders led by the State Bank of India (SBI) said on Friday that they would be inviting bids for selling stake on April 6 and are ready to look at other options if the stake sale efforts do not result in an "acceptable outcome." The lenders took stock of the current situation and said that they would go about the resolution plan in a time-bound manner under the present legal and regulatory framework. The last date for submission of expression of interest (EoI) is April 9, a statement released by the SBI on behalf of the 26 lenders said.
The lenders are cognisant that the outcome of the efforts of the lenders will depend on the interest shown by the parties on the sale of a stake in the company
"The lenders are cognisant that the outcome of the efforts of the lenders will depend on the interest shown by the parties on the sale of a stake in the company," the statement said.

The backdrop

The news comes a few weeks after a consortium of lenders led by the SBI took control of the airline and promised to infuse capital totalling Rs 1,500 crores as part of a debt resolution plan. The plan was approved by the Jet Airways board on March 25.