TI: Etihad skips Jet Airways bid

11 August 2019: The lenders of Jet Airways have received only three bids for sale of the grounded airline’s stake, with equity partner Etihad Airways not submitting a bid on the last day of the extended bidding process on Saturday.

Etihad Airways holds a 24 per cent stake in Jet Airways.

Sources told PTI that the banks received expressions of interest (EoIs) from three entities, of which two are financial players and another is a player in the global aviation space.

Saturday was the last day for submitting EoIs, after the time was extended for a week on August 3.

“Three bids have been received… but Etihad Airways did not submit bids this time around,” a bank source said.

Industry sources said the Hinduja group, which had shown interest earlier, also did not turn up this time.

Panama-based fund Avantulo Group is one of the three entities which have submitted EoIs, said another source.

The three EoIs will be reviewed by resolution professional Ashish Chhawchharia to ascertain their eligibility.

Late last month, the resolution professional had floated EoIs for selling stake in the airline that stopped flying mid-April.

The SBI, the lead banker to the airline, has approved Rs 10 crore interim funding and other banks are also in the process of approving the same, bankers had said.

The lenders had on June 17 decided to take the airline, which stopped flying on April 17, to the NCLT as they could not find a buyer.

Early July, the resolution professional had said he had received claims worth over Rs 25,500 crore as of July 4, including over Rs 200 crore from founder Naresh Goyal, which was rejected.

State Bank has made a claim of Rs 1,644 crore, including cash credit inclusive of interest, term loans and bank guarantees.

Yes Bank has claimed Rs 1,084 crore, followed by PNB’s Rs 963 crore and IDBI Bank’s Rs 594 crore. 

The Telegraph India reported

Categories: General News, India Bankruptcy

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