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Jet Airways extends deadline for initial bids to August 10

File photo. Photograph:( Reuters )

Reuters Mumbai Aug 03, 2019, 06.19 PM (IST)

Jet Airways has extended the deadline for initial bids for the bankrupt airline to August 10 from August 3, a statement from the company said on Saturday.

Jet, once ranked among the country's biggest airlines, was forced to ground all flights in April after running out of money and failing to secure funds, crippled by mounting losses as it attempted to compete with low-cost rivals.

The bid submission deadline has been extended at the request of some prospective bidders, it said.

Jet Airways and its lenders have been searching for new investors since its planes were grounded and staff left unpaid.

Lenders to the airline agreed on July 19 to provide interim financing to help it cover legal and other costs as bankruptcy resolution experts seek a buyer.

Last month, Ministry of Corporate Affairs ordered an investigation into embattled Jet Airways over alleged mismanagement of funds, in another headache for the airline that halted operations in April after running out of cash.

The ministry ordered the Serious Fraud Investigation Office (SFIO) to carry out the probe, according to a government order seen by Reuters.

Separately, a government source told Reuters that the airline's former chairman, Naresh Goyal, had approached Delhi High Court to quash an order by authorities that stops him from travelling abroad. The government plans to oppose Goyal`s plea, the source added.