Logistics

Jet Airways’ bidder Synergy gets extension till December 16

Our Bureau Mumbai | Updated on November 19, 2019 Published on November 19, 2019

Synergy Group, the sole potential bidder for Jet Airways, will get an extension only till December 16 to submit a final bid and a resolution plan. The South American company had asked to extend the deadline to February 2020.

The Resolution Professional will have to seek an extension from the NCLT for another 90 days as the 180-day deadline ends on December 16.

Sources in the know told BusinessLine that during the Committee of Creditors (CoC) meeting, the lenders had verbally agreed to extend the deadline to December 16 as opposed to Synergy’s request to extend the deadline to February 2020.

One of the persons mentioned above said, “While the CoC has agreed, the voting among all members is paramount. Also, an extension till February 2020 is impossible because the summer slots will be gone as well.” The summer slots are allotted by January. On Monday, the Mumbai Bench of the NCLT had asked Synergy to make the representation in the court by or on December 3.

Slot allocation

According to another source, during the meeting it was discussed that the Amsterdam slots could be preserved. However, Synergy needs the Heathrow slots and clarity on Indian slots which were temporarily allotted to Indigo, SpiceJet and Vistara.

“There is an announcement likely to come from the government in the next few days regarding the slots. This is also dependent on the kind of pressure SpiceJet, IndiGo and Vistara put on the government to retain those slots.”

Before its grounding on April 17, Jet had the most premium slots in Mumbai and Delhi.

The source added that even if the extension has been granted, there are a lot of variables that will determine the future of Jet Airways.

He explained, “We have done a calculation and according to our plan, Jet needs at least $150-200 million for its revival. Should Synergy even put in a bid, the lenders should be willing to take a haircut — and that too a huge one.”

Besides this, Synergy has to also find an Indian partner and propose a viable business plan for Jet’s revival.

Published on November 19, 2019
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