Jet Airways Lenders Make Presentation To Synergy Group
Jet Airways India Ltd. aircraft sit on the tarmac at Chhatrapati Shivaji Maharaj International Airport in Mumbai, India (Photographer: Dhiraj Singh/Bloomberg)  

Jet Airways Lenders Make Presentation To Synergy Group

Bookmark

The lenders to the bankrupt Jet Airways (India) Ltd. on Monday made a presentation to the South American conglomerate Synergy Group, which has reportedly emerged as sole potential buyer of the airline, according to a person privy to the development.

After the Aug. 10 deadline, Synergy Group Corp, which owns majority stake in Colombian carrier Avianca Holdings, had reportedly evinced interest in the airline, which had already received expressions of interest, which were subsequently withdrawn, from energy baron Anil Agarwal’s family trust-backed Volcan Investments, Russian Fund Treasury RA Partners and the Panama-based Avantulo Group.

The lenders of Jet Airways on Monday made a presentation to the Synergy Group, which is likely to invest in the carrier. They shared information about the airline’s assets, manpower, liabilities, among others, the person cited earlier told PTI requesting anonymity.

The person also said the exercise is expected to stretch to Tuesday.

When contacted, Antonio Guizzetti, the president of the Washington-based Guizzetti & Associates, which is the legal adviser to the Synergy Group, said he wasn’t aware of the developments.

The airline owes over Rs 8,500 crore, excluding interest and other penal charges, to a clutch of lenders led by State Bank of India.

The lender consortium, which owns 51 percent, had on June 17 sent the airline to the National Company Law Tribunal as they couldn’t find a buyer. Following this, the bankruptcy tribunal appointed Ashish Chhawchharia of Grant Thornton as the resolution professional to manage the affairs of the debt-ridden airline.

The resolution professional had in late July floated expressions of interest for the airline with the first deadline of Aug. 3 which was extended to Aug. 10 and another expression of interest with Aug. 31 deadline.

Naresh Goyal, who is being probed by the Enforcement Directorate probe for alleged money laundering charges, founded Jet Airways over 25 years ago and it stopped flying on April 17.

In the second round of submission of expressions of interest, which closed on Aug. 10, the lenders had received interest from Volcan Investments, RA Partners and Avantulo Group. However, Volcan opted out of the race a day after publicly announcing its interest in the carrier.

Etihad Airways, which owns 24 percent stake in Jet, didn’t submit its bid.

Jet Airways has liabilities over Rs 36,000 crore, including over Rs 10,000 crore in vendor dues, Rs 8,500 crore along with interest owed to lenders, over Rs 3,000 crore in salary dues, and more than Rs 13,500 crore in accumulated losses over the past three years.

The resolution professional had received claims worth over Rs 26,500 crore as of July 4, including over Rs 200 crore from founder Naresh Goyal, submitted by the holding company of the airline Jet Airways, which was rejected.

Also read: Jet Airways Insolvency: Two Entities Shortlisted To Submit Bids

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.