Jet Airways receives EoI from 4 players

Forum Gandhi Mumbai | Updated on May 28, 2020

Jet Airways aircraft   -  REUTERS

3 others express interest, seek more time to submit application

Jet Airways has received interest from seven entities as the deadline to submit an expression of interest (EoI) expired on Thursday. While four have submitted a formal EoI, others have sent e-mails expressing interest but seeking more time.

South America’s Synergy Group, which had submitted an EoI earlier, has once again shown interest, according to two sources. “There are three other potential bidders, besides Synergy,” said a source without giving the names.

This will be the fourth attempt by Jet’s lenders to resurrect the airline. In the previous rounds, Prudent ARC, a consortium of Enso Group and Russia-based Far East Development Fund, and South American Conglomerate, Synergy group, were in the race to bid for the debt-strapped airline but they failed to submit a plan.

One of the two sources quoted above said it is surprising that Jet has received so many interests. “There are three parties interested but we are unsure of their eligibility. Also, Synergy is facing financial trouble in its home market so one cannot bet they will bid. We have to get clarity on their offer,” said a source close to the process. Synergy owns a stake in Avianca Airlines which had earlier this month filed for bankruptcy. The source further added that Prudent ARC has been in contact with the team overseeing the debt resolution process. However, there was no confirmation whether Prudent has submitted an EoI or not.

When asked if more time will be given to those who have shown interest, a source said, “We are not extending the deadline for submitting the EoI. If we feel that the parties which have expressed interest are credible then we may decide to give more time.”

“Jet is available to the prospective buyer on a clean slate basis with neither any legacy cost nor legacy liabilities. With brand still in recall, Jet looks to be an attractive target. It may be broadly this line of thinking that would have led to so much of investor interest,” said Rajesh Prasad, the Chief Strategy Officer of Jet Airways.

Published on May 28, 2020

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