Saturday, November 16, 2019

More trouble for Jet Airways: Lenders order second forensic audit

The consortium of lenders to Jet Airways has ordered a second forensic audit into the airline’s financials to trace the money trail associated with some of the company’s dealings, sources told FE. “For determining the value of the airline, lenders have been asked for financial statements of some deals made by the company, such as the sale of certain assets and the value of intangibles. Banks do not have all of these details,” one of the people said.
Meanwhile, the Colombian Synergy Group, which was the only party interested in the beleaguered Jet Airways, has not yet put in a bid for the airline. The group, which had been given time till November 15, has sought time till February to evaluate their position, two people aware of the developments said.
Lenders are likely to accede to the request at the next meeting of the committee of creditors (CoC)on Tuesday. “At this point, the CoC is giving the extension as a hope against hope. Bankers are anyway in a situation of harakiri right now,” the person said.
The CoC to Jet has once extended the deadline and given Synergy Group time till November 15 to present a resolution plan. However, the Synergy Group has not found an Indian partner, and is also doubtful about the recovery of slots that were earlier allotted to Jet Airways.
“The Synergy Group is keen on the London Heathrow airport slots that belonged to Jet, and there is no clarity on the fate of those,” the person said.
16/11/19 Shritama Bose/Financial Express
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