Sahara tussle: Jet promises not to alienate its properties

Yesterday, was the last day for Jet Airways to respond to the execution application filed by Sahara in the Mumbai High Court for default on payment of installments.
Jet Airways filed its undertaking on Friday morning in the Mumbai High Court in response to Sahara’s execution application that was filed on March 30. We caught up with Jet Airways council, who confirmed that Jet Airways has assured Mumbai High Court that it will not further alienate or encumber any of its movable or immovable properties, except for under ordinary circumstance. What this means is that Jet Airways henceforth will not sell or lease out any of its moveable or immovable properties, except for example if it has to pay off its dues to oil marketing companies or to the Airport Authority of India.In its execution application, Sahara has said that Jet Airways has part defaulted on its payments, on its last two installments that it had to pay to Sahara. Hence, it now requires to pay Rs 1,000 crore to Sahara, which increases the Jet-Sahara deal valuations to Rs 2,000 crore as against Rs 1,450 crore. Sahara had also said that Jet hence does not require a time span of four years to complete paying off the installments to Sahara.
To counter argue Sahara, Jet Airways in its undertaking filed on Friday morning said Sahara has some tax obligation in 2007, which eventually got passed on to Jet Airways.
04/04/09 CNBC-TV18/ Neha Pandey/Moneycontrol.com

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Categories: Jet Airways Apr 2009