Kashish Madan
Bankrupt carrier Jet Airways NSE -4.89 % India Ltd., once the nation’s biggest by market value, faces fresh warning signs as a deadline to avoid liquidation looms.

Creditors will likely be forced into extending a Feb. 17 deadline for the sale of the airline as the shortlisted bidders have yet to form bidding groups, according to people familiar with the matter. Time is tight as creditors may have to push the company into liquidation if there is no resolution by around mid-March.

In a stunning fall, the Mumbai-based airline was forced to suspend operations last year after it fell victim to a cut-throat price war initiated by a slew of budget carriers. It has missed payments to banks, staff, and lessors.

The two shortlisted bidders Synergy Group Corp. and Prudent ARC Ltd. had both submitted expressions of interest in January, but haven’t yet cobbled together bidding groups. Synergy is seeking a local partner for its bid, while Prudent is looking to team up with a company with international aviation experience, the people said, asking not to be identified because the matter is private.
Quote 0