HDFC to auction Jet Airways Godrej BKC Tower

Updated: May 08, 2019, 10:38 IST | mid-day online correspondent

Jet Airways had tied up with Godrej Properties in 2011, to jointly develop the plot. The property was mortgaged to HDFC and they were now enforcing the mortgage

HDFC to auction Jet Airways Godrej BKC Tower
Jet Airways

After Jet Airways failed to pay back a loan of Rs 414 crore, HDFC announced that it will auction a part of Jet Airways Godrej BKC Tower in Bandra Kurla complex.

The auction will be held electronically on May 15, 2019. HDFC has set a reserve price of Rs 245 crore for the fourth floor of the building of 52,775 sqft.

Jet Airways had suspended its operations last month on a temporary basis after lenders rejected their request for Rs 400 crore lifeline.

Also read: Mumbai: Jet Airways staff seeks FIR against top bosses

Jet Airways had tied up with Godrej Properties in 2011, to jointly develop the plot. The property was mortgaged to HDFC and they were now enforcing the mortgage.

After a section of employees floated the proposal to take over management control of the grounded Jet Airways and arrange up to Rs 3000 crore from external investors, some frequent-flyers approached key-lenders, including State Bank of India, ICICI Bank and Punjab National Bank to submit the Revival of Jet Airways Plan or Roja. The group has proposed a leveraged buy-out plan to revive the grounded airline.

Jet Airways' ex-Chairman Naresh Goyal has penned another emotional letter to employees, reigniting hopes of reviving the now defunct airline.

Reminiscing on the past, Goyal said: "Each year since the past 25 years, the 5th day of May has held a special place in the hearts of each of us."

"But yesterday, our 26th anniversary was the saddest of all days, with no flights, added to which the sad coincidence that on 18th April 1993 we received our first aircraft in Mumbai, while in the early hours of the morning of 18th April 2019 we operated our last service from Amritsar to Mumbai."

The former Chairman said he hopes the bank-led resolution plan will succeed and that a successful bidder will emerge by May 10.

"Neeta and I are anxiously hoping that there will be a positive outcome on the 10th of May 2019 as per the BLRP deadline...It is our dearest wish, like yours, to witness the blazing sun reappear from behind the dark clouds of the past weeks, on a canvas of never-ending blue," read the ex-chairman's message to Jet employees.

Also read: Jet Airways employee complains of Forex allowance debited without prior intimation

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