As liquidation threat looms, Jet Airways bidders still not ready

Bankrupt carrier Jet AirwaysNSE 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.