Wednesday, December 18, 2019

Two new entities show interest in bidding for Jet Airways

Mumbai: The Committee of Creditors (CoC) of the defunct Jet Airways has agreed ‘in-principle’ to invite fresh Expression of Interest (EoI) as two new entities have shown an early interest in bidding for the airline.

Resolution Professional for the airline, Ashish Chhawchharia, informed the National Company Law Tribunal (NCLT) about the development on Tuesday.

According to sources, one Indian entity backed by a UK-based investor, and a West Asian fund have shown an early interest in the company.

What this means is that South America’s Synergy Group, which was the sole potential bidder to submit the Expression of Interest, will have to put in a fresh EoI during the next round. Chhawchharia informed the NCLT that the company had submitted a draft business plan.

One of the persons mentioned above added that there were a few complications with Synergy's conditions. “They needed clarity on the slots, and the aircraft, which is not possible at the moment,” he added.
The representatives of Directorate General of Civil Aviation (DGCA) and Ministry of Civil Aviation (MoCA) clarified that they would “positively” consider allocating summer slots of Jet Airways if a firm business plan is given for the defunct airline by the investors.
A person in the know of Jet’s resolution process said, “The draft business plan is not compliant with our CIRP (corporate insolvency resolution process). We need a final resolution plan and further commitments from Synergy Group.”
The Synergy Group’s representatives were to meet the Mumbai Bench of NCLT on December 17. However, due to unforeseen circumstances, they could not be present. The RP informed the Bench that Synergy's representatives would come on December 19. The Bench obliged and posted the next hearing to the said date.
18/12/19 Forum Gandhi/Business Line
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