Jet Airways saga: Four shortlisted entities sign non-disclosure agreement

Forum Gandhi Mumbai | Updated on June 19, 2020

Signing the NDA gives the potential bidders access to the data room, which houses info on the company’s assets, vendors, employees, liabilities

Exactly a year ago, Jet Airways was dragged to the NCLT over unpaid dues. As the debt-strapped airline is still awaiting a resolution, in the latest update, all four shortlisted parties who had placed an Expression of Interest (EoI) for Jet Airways have been finalised. Further, sources have confirmed that these parties have signed a non-disclosure agreement (NDA).

A source privy to the information said, “All the four parties that had been shortlisted have been finalised. This includes the one party that hadn’t submitted its complete documents. Furthermore, they have also signed NDAs.”

Among the four parties is UK-based financial advisory firm Kalrock Capital, which has submitted an EoI with Murari Lal Jalan, a UAE-based entrepreneur.

Another shortlisted entity is a consortium comprising Haryana-based Flight Simulation Technique Centre Pvt Ltd (FSTCPL), Mumbai-based Big Charter Pvt Ltd (BCPL), and Abu Dhabi-based Imperial Capital Investments LLC (ICIL).

The third entity that’s been shortlisted is Canadian entrepreneur Sivakumar Rasiah.

Kolkata-based Alpha Airways has also been shortlisted, albeit provisionally, since its documents are incomplete.

Signing an NDA gives the potential bidders access to the data room, which houses information on the company’s assets, vendors, employees, and liabilities.

The potential bidders will have to submit their respective resolution plans on or before July 11 to Ashish Chhawchharia of Grant Thornton, who has been appointed the Resolution Professional (RP). Chhawchharia was appointed by State Bank of India, the lead lender to the airline, and which had dragged it to the insolvency court on June 20 over unpaid dues.

Though the company’s turnover threshold was reduced to ₹500 crore from ₹1,000 crore, if industry experts are to be believed, “the revival of Jet is difficult now in Covid-19 times. This is the fourth attempt to try and revive it; we’re unsure if it will be able to see the light at the end of the tunnel. There are already operational LCCs in India that are struggling; in this case, Jet isn’t even operational.”

Meanwhile, according to a public notice put up by the RP, the office of Jet Airways located in the Godrej BKC building in Mumbai is scheduled to be e-auctioned on June 26 as part of the corporate insolvency resolution process. The third and fourth floor offices of the airline, which is mortgaged to HDFC, and measures approximately 1,69,983 sq ft saleable area, is now up for auction .

Published on June 19, 2020

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