Antarius wrote:CaliguyNYC wrote:dtw2hyd wrote:
So many a.net twisted facts and definitions. Let me try in the form of simple questions.
Who is SBI?
A lender took over control of the company by throwing out BODs
An outsourced consultant managing the sale process
What is A.net definition of the bailout, which is being frequently BLTed.
Is it in reference to 8500 Cr? That is gone, very little chance of recovering with SBI's skillset.
Is it in reference to 1500 Cr new loan? No one is expecting SBI cartel to give new loans.
Tiny (vs) Huge impact
1200 Cr NPA on SBI gross NPAs - Tiny
9W going out of business on Indian economy - Huge
Well said but people don’t want to hear it. Some are so focused on Jet disappearing that they can’t see the big picture. Spice and Indigo have totally flailed in coming up with a plan to replace Jet’s international capacity. Will BOM and Del be hurt, sure a little. But smaller towns in India will really feel it as it has become harder to buy one ticket for tourists to reach smaller towns. Skyteam no longer is selling tickets to cities outside of DEL, BOM and BLR. But I guess Spice and EK’s codeshare will solve the international issue.
Again, what's your plan? In one post you say that the lenders should try to recoup value on an NPA. Here you bemoan 9W disappearing...
What is left to sell of 9W, even without the debt? Slots will be returned and reallocated, aircraft are all gone. All you have is a brand name that's worthless now.
9W failed on it's own accord. Does it suck when the market corrects itself in the short term, yes. Such is life everywhere. Others will fill the place as they have so far.
Clearly there is something of value or 4 groups would not have bid. What do you think they bid on? The notion that Jet would just be shut down is such a waste of value and one of those “only in india things.” The issue for the GOI is: do they provide the needed creditor relief to the new Jet owner. If they can, they recover some of the money. But yes the temporary slots that were granted would have to be given back in October. If they can’t give relief, the banks recover nothing, Jet folds and the other airlines keep the slots. But I bet non GOI banks would think twice in giving loans as you basically can’t sell off the pieces of a business. India becomes a binary world of save it all or save nothing.