Companies

Jet Airways may get financial bids from 2 entities

Forum Gandhi Mumbai | Updated on July 20, 2020 Published on July 20, 2020

Jet Airways is likely to get financials bids from two of the shortlisted entities ahead of the July 21 deadline.

Sources privy to information said the consortium of Flight Simulation Technique Centre Pvt Ltd (FSTCPL), Big Charter Pvt Ltd (BCPL) along with Imperial Capital Investments LLC (ICIL), is expected to place a financial bid.

The other consortium of financial advisory firm Kalrock Capital, and Murari Lal Jalan, a UAE-based entrepreneur, is also likely to submit a binding bid for a stake in Jet.

The two consortiums are likely to submit a soft copy of the bid due to the ongoing Covid-19 pandemic and travel restrictions.

 

The other two short-listed entities may not take their expression of interest forward. Sources said Canadian entrepreneur Sivakumar Rasiah wasn’t able to find an Indian partner, and Kolkatta-based Alpha Airways, too, wasn’t able to continue with their plans to invest in Jet over investment issues.

Jet Airways, which went belly up in April 2019, was dragged to NCLT in June 2019, over unpaid dues. Under the NCLT-led process, Jet’s resolution professional has been given a deadline of August 31 to come up with a resolution plan for Jet Airways.

 

“The global aviation Industry is struggling and, Jet in the thick of the pandemic, has been able to invoke good investor interest. If all stakeholders can now work in unison to find a resolution for Jet, it will be an unprecedented achievement in the global aviation space. Further, exposures in the aviation sector are entirely not asset-backed – leasing of aircraft being one major item. Thus, resolution will have to be the preferred over recovery as a yardstick,” said Rajesh Prasad, the Chief Strategy Officer at Jet Airways.

A banker said that if Jet Airways doesn’t manage to get an acceptable resolution this time, it is most likely going to be liquidated.

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Published on July 20, 2020
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