11 August 2019: Beleaguered airline Jet Airways has received expressed of interest (EoI) from three companies out of which one happens to be Volcan Investments — the family trust of Vedanta’s Chairman Anil Agarwal while the other two bidders are foreign funds — Panama-based investment firm Avantulo Group and Russian Fund Treasury RA Creator, CNBC-TV18 reported citing multiple sources. However, Etihad Airways and Hinduja Group haven’t expressed their interest in bidding, sources indicated.
Volcan Investments, which count Anil Agarwal and family as its key stakeholders, will have Agarwal entering into the aviation market if it succeeds in bidding. The received EoIs will be examined by the resolution professional following which the final binding bids will be sought from the selected players that is likely to be submitted by September 12, as per an earlier note to exchanges by the resolution professional. “This process is being managed by the resolution professionals and at this time, out of respect for the process, Etihad Airways has no comment to make,” Etihad Airways spokesperson said in a statement to CNBC-TV18.
Jet Airways’ final resolution plan is likely to be submitted on September 27 to National Company Law Tribunal (NCLT) for approval, Financial Express had reported. The tribunal had started insolvency proceedings against Jet Airways on June 20 after an application by the State Bank of India. The NCLT sought faster resolution for the airline since the matter was considered to be of ‘national importance’. Judge VP Singh, in his order, had urged the resolution process to be over within 90 days.
The airline’s lenders had extended the EoI submission deadline by a week to August 10. Late last month, the resolution professional Ashish Chhawchharia had floated EoIs for selling stake in the airline. Jet Airways had to cease operations on April 17 as lenders refused giving emergency funds following which the ministry of civil aviation had to re-allocate the Jet’s slots to other airlines on a temporary basis till October.