Companies

US-based Interups yet to infuse funds into regional airline TruJet

Forum Gandhi Mumbai | Updated on July 15, 2021

Both companies had signed an agreement in April

Two months after agreeing to invest in regional airline TruJet, US-based company Interups is yet to infuse the funds into the company.

In April, TruJet and Interups had signed an agreement under which Interups had agreed to pick up a 49 per cent stake in the airline for an undisclosed amount. The deal was seen as a huge relief to the cash-strapped airline as it was struggling to stay afloat.

In response to BusinessLine’s query, Laxmi Prasad, chairman of Interups said that he is likely to make the payment between August 15 and August 30.

He further added that he was awaiting security clearances from the Directorate General of Civil Aviation and Ministry of Civil Aviation for the appointment of certain individuals to the board of the airline.

“Internally, we have signed a $1.6 billion joint financial participation with another US-based financial group, each of us investing $800 million into Indian acquisitions. About ₹1,575 Core is allocated for TruJet,” Prasad said.

Talks for new buyer

According to sources, Interups was supposed to bring the money by June. TruJet’s promoters Megha Engineering and Infrastructure has, meanwhile, initiated talks to find a new buyer for the company.

Multiple sources requesting anonymity said that the promoters are in a hurry to find an investor as the airline has already defaulted on the payments scheduled in the first week of June.

Salaries to the employees of TruJet have also been delayed for the past two months.

Salaries to staff

The promoter group had to step in and pay the salaries of the staff on the company’s sixth anniversary recently.

“On salaries, we have committed payment to the erstwhile management of a date and the salary released by them is based on that commitment we offered,,” Prasad said.

Fresh investments are critical for TruJet as it is facing a massive financial crisis. Last month, BusinessLine had reported that the airline had to ground most of its operations after the aircraft lessor, Elix, sent notices to the company over unpaid dues.

The airline is now flying two aircraft after an agreement with Elix.

Published on July 15, 2021

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