Four shortlisted for placing financial bids for Jet Airways

Forum Gandhi Mumbai | Updated on June 03, 2020

File photo   -  Prashant Waydande

Jet Airways' Resolution Professional has short-listed four companies for placing a financial bid for acquiring Jet Airways.

While nearly seven entities had submitted Expression of Interests (EoIs), three have been disqualified, according to sources. South American conglomerate, Synergy Group which had put in its EoI for the fourth time, has also been disqualified.

When contacted, Rajesh Prasad, the Chief Strategy Officer of Jet Airways told BusinessLine, "We are pleased that four have made it to the provisional list. We also expect all four of them to submit binding bids as Jet continues to be an attractive acquisition target within the NCLT framework." Prasad, however, declined to disclose the names of the four shortlisted parties.

According to sources privy to the information, Alpha Aviation, Kalrock Capital, Imperial Capital, and Siva Rasiah have been shortlisted. These four companies will be given one month for due diligence after which, if interested, they will have to place a firm bid and a resolution plan.

As far as Synergy is concerned, another source said that it was “disqualified from bidding for Jet Airways under Section 29A of the Insolvency and Bankruptcy Code.”

One of the persons quoted above said that since Synergy owns a stake in Avianca Airlines, which had last month filed for bankruptcy, it has been disqualified.

Section 29A of the IBC was introduced to disqualify persons from being resolution applicants. If persons who by their conduct had contributed to the financial distress of the corporate debtor or are otherwise deemed not to be fit and proper to gain control over distressed assets are disqualified under this section.

Published on June 03, 2020

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