Friday, September 22, 2006

Jet permitted withdrawal from escrow account

New Delhi: The Bombay High Court has allowed private carrier Jet Airways to withdraw Rs 1,500 crore deposited by it for acquiring rival Air Sahara. "Jet will have the right to withdraw Rs 1,500 crore against bank guarantee of the same amount," Justice D K Deshmukh said in his order.
The amount in the escrow account will go to Jet and the interest will go to Air Sahara.
An arbitration tribunal will decide the escrow account formalities. The amount in the escrow account, maintained at ICICI's Nariman Point branch, will be returned to Jet and the interest accrued on the same will go to Air Sahara.
The remaining formalities regarding the escrow account and all other related the arbitration tribunal would decide disputes. Jet lawyer Harish Salve stated that Jet Airways would submit the bank guarantee (for the same amount) on Monday.
22/09/06 NDTV.com

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