Panel to hear Jet-Sahara row from Monday

Mumbai: The acrimonious battle between Jet Airways and Air Sahara is entering the final round with the arbitration panel starting final hearing in Mumbai from Monday. Sources close to the affair say that the panel has made it clear that they will focus on whether the specific performance parameters inked in the share purchase agreement were met before the deal fell through in June last year.
Jet is likely to maintain — as it has done in the past — that various approvals from the government had not been secured before the cut-off date. Sahara, on the other hand, will argue that all the eight to nine major conditions — such as approval from the banks and government clearances for directors on the board — had been met and that the transaction should be closed.
Much rides on the panel’s verdict as it will be binding on both carriers. At stake is about Rs 2,200 crore, of which Rs 1,500 crore is in the form of a bank guarantee given by Jet Airways, about Rs 500 crore in cash that Air Sahara is in possession of and about Rs 200 crore that the Mumbai-based airline invested in Air Sahara when it was running it.
07/04/07 Cuckoo Paul/Economic Times

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Categories: Air Sahara Apr 2007, Jet Airways Apr 2007