The Hindu Business Line

Etihad, Anil Agarwal drop plans to bid for Jet Airways

Liq­ui­da­tion may be the only op­tion for the stressed air­line

- Business · Etihad Airways Crystal Cargo · India · Panama · Belgium · Belarus · State Bank of India Group · Republican Party (United States) · Jet Airways · Volcan · Bank of India · National Company Law Tribunal

Jet Airways seems to be head­ing to­wards liq­ui­da­tion with two ma­jor en­ti­ties that were ear­lier ex­pected to bid for the air­line with­draw­ing from the race on Mon­day.

While Etihad Airways said it has de­clined to sub­mit an ex­pres­sion of in­ter­est (EoI) to ac­quire Jet’s assets be­cause of un­re­solved is­sues con­cern­ing the lat­ter’s li­a­bil­i­ties, Anil Agarwal’s fam­ily trust Vol­can In­vest­ments, not as­sign­ing any rea­son, said it does not in­tend to pur­sue the deal.

“The EoI for Jet Airways by Vol­can was ex­ploratory in nature,” said a Vol­can state­ment.

“On fur­ther evaluation and con­sid­er­ing other pri­or­i­ties, we in­tend to not pur­sue this fur­ther.”

“In­dia is amongst the largest and fastest grow­ing avi­a­tion mar­kets in the world...many air­lines and in­vestors will look at this op­por­tu­nity,” it added.

Con­di­tional EoI

In re­sponse to Busi­nessLine’s query, Etihad on Mon­day said: “Etihad pre­sented a con­di­tional EoI to rein­vest in Jet as a mi­nor­ity stake­holder, with an agreed part­ner, but un­for­tu­nately this did not ma­te­ri­alise. Etihad re­mained en­gaged in the process, but de­spite the en­deav­ours of ev­ery­one in­volved there re­mained very sig­nif­i­cant is­sues re­lat­ing to Jet’s pre­vi­ous li­a­bil­i­ties. Re­gret­tably, in th­ese cir­cum­stances, it was nei­ther fea­si­ble for, nor re­spon­si­ble, of Etihad to rein­vest in Jet at this time.”

Two play­ers left

This leaves only two rel­a­tively un­known play­ers in the fray. One is a Panama-reg­is­tered en­tity, but it is not clear who is behind this com­pany.

An­other en­tity, called Rus­sian Fund Trea­sury RA Cre­ator, is also un­der­stood to have put in a bid but its In­dian rep­re­sen­ta­tive was not reach­able for a com­ment.

Fi­nal bids from the short-listed play­ers are ex­pected to be sub­mit­ted by Septem­ber 12. “If there is no cred­i­ble player in­ter­ested in ac­quir­ing Jet’s assets, the lenders will be left with no op­tion ex­cept to liq­ui­date it,” said a mar­ket an­a­lyst.

Af­ter its ground­ing, Jet’s lead lender State Bank of In­dia had dragged it to the Na­tional Com­pany Law Tribunal (NCLT) to re­cover its dues. Ashish Ch­hawch­haria, Jet’s res­o­lu­tion pro­fes­sional (RP), had re­ceived 16,643 claims worth ₹24,888 crore from fi­nan­cial, op­er­a­tional and other cred­i­tors.

 ??  ??

Newspapers in English

Newspapers from India