Brookfield to acquire Jet Airways' Mumbai office for Rs 490 crore

Mumbai: Brookfield Asset Management is buying two floors from Jet Airways in the Bandra Kurla Complex in Mumbai for Rs 490 crore. The Canada-based investment fund, which owns 25 million square feet of commercial space in the country, was the sole bidder in an auction held on Friday, sources said.

Brookfield will pay around Rs 29,000 per square foot for around 170,000 square feet of office space in Jet Airways’ Godrej building. According to real estate experts, the price quoted by Brookfield (which was also the auction reserve price) is fair given the current market conditions. Brookfield declined to comment. Private equity firm Blackstone had paid Rs 40,000 per square foot last year for 650,000 square feet in the same Bandra Kurla Complex.
Ashok Kumar, managing director at Gennex Partners, a commercial real estate services firm, said the property would have fetched 10 per cent more if the market conditions had been normal. “It’s a fair price, given the prevailing market conditions. In fact, it is great that deals are happening in the current scenario,” said Kumar.
Jet’s two floors have been mortgaged to HDFC. Earlier this month, the National Company Law Tribunal allowed the sale of the property. The proceeds of the sale will be used to clear the grounded airline’s debt. Around Rs 360 crore from the sale will be paid to HDFC against its claim of Rs 424 crore. A portion of the proceeds will be used to settle a pending aircraft loan from the US Exim Bank.
27/06/20 Aneesh Phadnis & Raghavendra Kamath/Business Standard

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ED contests police’s all-clear to Goyal, Jet Air in cheating case

Mumbai: The Enforcement Directorate has contested the clean chit given by the Mumbai Police to Jet Airways and its promoter Naresh Goyal in a cheating case, claiming that its probe revealed that Goyal misappropriated funds and diverted them to personal accounts held by him and his wife.
The ED filed an intervention application before a local court, saying the city police failed to probe the details of offshore accounts provided by the complainant, Akbar Travels of India. It said there is evidence of money laundering and it was not just a case of business loss, as the police concluded.
The federal agency also asserted that the local police failed to even record the statement of Goyal.
“Huge amount of money has been paid by Jet Airways to some of its group companies abroad by way of commission/reimbursement of expenses which are highly inflated,” the ED said in its application reviewed by ET. “That said money is further diverted to personal accounts of Goyal and his wife Anita.”
The ED claimed the police ignored issues raised in the complaint that Jet Airways and Goyal diverted funds illegally to bank accounts abroad.
“It appears that Jet Airways suffered losses at the cost of enriching Goyal and his family members,” it added.
The agency told the court it was able to unearth foreign bank accounts held by the Goyals in the UAE, the UK, Switzerland, Singapore, the US and other countries. It said they hold eight offshore properties.
“Goyal is not disclosing the details of these foreign accounts. He has not cooperated with the investigation and is deliberately not obtaining bank statements of these accounts,” the ED claimed. “Details of the property are not fully disclosed. Goyal has not explained the source of funds for buying various properties.”
The ED said Goyal has not explained the source of certain amounts credited to his overseas accounts in Geneva and the UAE.
27/06/20 Rashmi Rajput/Economic Times

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Jet Airways bidding: Lenders shortlist four bidders for airline's revival

New Delhi: Lenders to crisis-hit Jet Airways, which has been grounded for more than a year, have reportedly finalised four potential bidders who may submit a bid proposal to acquire stake in the bankrupt airline by next month. The suitors have inked non-disclosure pacts with the Jet Airways' committee of creditors and have been given access to the defunct airline's financial data, BloombergQuint reported, citing a source.

The four little-known bidders who have shown interest in Jet Airways are UK's Kalrock Capital Partners and one Dubai-based man, Murari Lal Jalan; a consortium of Abu Dhabi-based Imperial Capital Investments LLC (ICIL), Haryana-based Flight Simulation Technique Centre Pvt Ltd (FSTCPL) and Mumbai-based Big Charter Pvt Ltd (BCPL); Canada-based entrepreneur Sivakumar Rasiah; and Kolkata's Alpha Airways.

As per the report, the bidders have been given two weeks' time to review the financial health of the company and firm up their bids. The bidders have the option to not submit a bid at the end of the due diligence process, it said.
The deadline for corporate insolvency resolution process of Jet Airways has been extended by more than two months to August 21 to exclude the duration of coronavirus lockdown that began on March 25. This happens to be the fourth round of bidding for the defunct carrier.

The deadline was extended after Jet Airways' Resolution Professional applied to the National Company Law Tribunal (NCLT), seeking a 90-day extension for the resolution process of the airline light of COVID-19 pandemic.
25/06/20 Business Today

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Auction of Jet Airways BKC office piques buyers’ interest

Despite the impact of Covid-19 on the real estate sector, the approaching auction of the Jet Airways office located in the Godrej BKC building in Bandra Kurla Complex has been stirring interest. Several corporate companies, a leading private bank, a prominent real estate fund and a global asset management firm have made enquiries for possible bids, sources said.
 The third and fourth floor office mortgaged to HDFC Ltd is scheduled to be e-auctioned on June 26 as part of the corporate insolvency resolution process underway before the National Company Law Tribunal (NCLT). According to a public notice issued by the NCLT-appointed resolution professional Ashish Chhawchharia, the approximately 1,69,983 sq ft saleable area on the third and fourth floor of the building will be put on the auction block.
 The reserve price has been finalised at Rs 490 crore, and prospective bidder will have to pay an earnest money deposit of Rs 25 crore along with the bid document on or before June 24. An inspection of the property has been scheduled on Friday between 11am and 1pm. Karan Singh Sodi, regional managing director, JLL India said, “The Jet Airways floors should generate a good level of interest even in these uncertain times as the base price issued is way below the recently concluded sale transactions for Grade A assets in BKC. The reserve price is approximately 25 per cent below the average prevailing prices for Grade A assets”. The reserve price translates to a value of Rs 28,900 per sq ft, while the last big transaction in Godrej BKC was closed at Rs 36,000 per sq ft. Market sources said Grade A assets like Godrej BKC have been witnessing a healthy increase in rentals from 16 per cent to 21per cent in the last 12 months.
 18/06/20 Satish Nandagaonkar/Mumbai Mirror

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ED for probe against Jet Airways to continue

Mumbai: The Enforcement Directorate (ED) on Tuesday filed an intervention plea before a local court here, requesting the judge to continue an ongoing probe against Jet AirwaysNSE 4.97 % and Naresh Goyal after the city police closed a complaint that had claimed forgery and cheating by the grounded carrier and its founder.
The application comes after the Mumbai Police filed a closure report in the cheating and forgery case registered against the mothballed airline, saying that there was no evident case against Jet Airways or its founder.
Sources said that the ED move was prompted as its money laundering case against Goyal and others is based on the predicate offence of cheating and forgery lodged by the Mumbai Police.
“A probe under the Prevention of Money Laundering Act (PMLA) is based on a predicate offence registered by another law enforcement agency. In this case, the ED's Enforcement Case Information Report (ECIR) was based on Mumbai Police’s case. Since the police closed the case, it will have an adverse effect on the money laundering probe and hence an intervention application has been filed,” said a source privy to the details.
Other than the ED, the complainant, Akbar Travels India Pvt Ltd also plans to file a protest petition on July 6 when the matter will be heard next.
17/06/20 Rashmi Rajput/Economic Times

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NCLT allows Jet Airways to sell office in Mumbai's Bandra Kurla Complex

Mumbai: The NCLT has allowed Jet Airways to sell its premises in Bandra Kurla Complex (BKC) to settle Rs 360 crore dues of mortgage lender HDFC, clear overseas debt and cover corporate insolvency resolution process costs.
Jet Airways' insolvency resolution professional Ashish Chhawchharia had moved the NCLT to seek approval to sell its third and fourth floor in Godrej BKC building to clear overseas debt to transfer the title of six aircraft under Export-Import Bank of the US to the corporate debtor, which would help in maximising value of the defunct airline.
The insolvency professional had sought permission of the tribunal for the sale of the premises after a resolution was passed at the 10th committee of creditors (CoC) meeting held on April 24 with approval of 74.45 per cent votes.

The Principal Bench of NCLT in its order on June 11 granted permission to the grounded airline to sell the premises for utilising the proceeds to settle Rs 360 crore dues of HDFC, as against the mortgage lender's claim of Rs 424 crore.

The property is non-core asset of the grounded airlines, which was never used by Jet as part of its airlines business, the order said.

The lenders have kept the reserved price of Rs 490 crore for the property, it added.

Auction for the same is expected to take place on June 26, according to sources.

The order further said that the US Exim Bank holds a charge over six aircraft, of which cumulative depreciated value is over $200 million.
14/06/20 Press Trust of India/Business Standard

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Jet Airways lenders put the defunct airline’s BKC office on the block

Mumbai: The dedicated bankruptcy court has allowed lenders of defunct carrier Jet Airways to sell its office assets located in BKC, a prime commercial suburb of Mumbai. On June 11, the Principal Bench of the National Company Law Tribunal (NCLT) allowed the lenders to go ahead with the monetization plan for about 1.70 lakh square feet saleable area that comprises of 3rd and 4th floor of building ‘Jet Airways Godrej BKC’.
 The asset also includes rights to use parking space for about 140 cars. The lenders have kept the reserved price of Rs 490 crore for the property and the auction for the same is expected to take place on June 26.
 “The proceeds from the proposed sale of premises will be utilized for the clearing residual dues remained payable to one Export-Import Bank of the United States over the finance lease created on six aircraft of corporate debtor (Jet Airways) and to HDFC over the security interest created in favour of it,” said the six-page order. According to the order, US Exim holds a charge over six aircraft of which cumulative depreciated value is over $200 million.
“If the amount payable to US Exim is not paid, US Exim will become entitled to repossess the six aircraft,” said the order further adding that the US Exim bank has agreed that upon the payment of $13 million (about Rs 90 crore), it will transfer the title of six aircraft to the corporate debtor.” With this development, Jet Airways can add six aircraft in its fleet worth around Rs 1,400 crore, which will help its prospects for better bidders, people aware of the development said.
 13/06/20 Maulik Vyas/Economic Times

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Bids invited from 4 little known suitors shortlisted for Jet Airways

Only four out of twelve suitors that came forward to submit an Expression of Interest to acquire grounded airline Jet Airways have made the eligibility cut, as per people in the know.

CNBC-TV18 had earlier reported that Jet Airways received twelve Expressions of Interest (EOIs) in the latest round of bidding. However, most of them did not meet the eligibility criteria set out by the committee of creditors, said people in the know.

Four players have now been shortlisted to submit bids for the airline, and have been asked to submit binding bids by July 11, CNBC-TV18 has learned. These include UK-based Kalrock Capital Partners along with an individual by the name of Murari Lal Jalan who is a resident of Dubai, people familiar with the matter told CNBC-TV18.

The second shortlisted player is another consortium comprising of Abu Dhabi based Imperial Capital Investments LLC (ICIL), Haryana-based Flight Simulation Technique Centre Pvt Ltd (FSTCPL) and Mumbai-based Big Charter Pvt Ltd (BCPL).

The third shortlisted player is a Canadian entrepreneur by the name of Sivakumar Rasiah, and the fourth player is Kolkatta based Alpha Airways, said sources who did not wish to be quoted.

Little is known about these four suitors that now remain in the fray for the airline. Banks CNBC_TV18 spoke to are not very confident of these EOIs getting converted into real bids, and say liquidation is a very real possibility.

This is the fourth round of bidding for Jet Airways, which was grounded over a year back and subsequently referred to the National Company Law Tribunal in June 2019 by its lenders.
04/05/20 Ritu Singh/CNBC TV18

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