MUMBAI: Lenders to Go First on Monday discussed extending the period for arriving at a corporate insolvency resolution plan (CIRP) by three to six months. With no outside bidder in sight for the beleaguered airline, lenders are considering approaching the Wadias – the promoters of the airline – to inquire if they have any plans for running the company.Banks, having expended Rs 100 crore on the airline’s salaries and other operational costs, are apprehensive about making a decision. They fear that a new legislation might be interpreted as applicable with retrospective effect, potentially enabling lessors to repossess the aircraft.
The Wadia group initially conveyed their intent to approach the bankruptcy court to restructure the airline’s liabilities and restore its viability. However, as the process commenced, the promoters have remained silent. During the expression of interest phase, Naveen Jindal’s Jindal Power submitted bids but was not deemed a serious contender. Although the airline is under bankruptcy, the promoter Wadia group includes several blue-chip companies, including Britannia Industries, Bombay Dyeing, and Bombay Burma.
Lenders are currently assuming the role of the board of directors in their capacity as a committee of creditors.