Hinduja Group, Synergy Group, and a Dubai-based fund are the three potential bidders and may mid for bankrupt Jet Airways (India) Ltd on or before 15th Jan 2020, two people with direct knowledge of the matter said.
Lenders to Jet Airways, who have repeatedly extended the deadline to submit expressions of interest (EoI), are unwilling to give any more time and have set a final deadline of 15 January, the people cited above said on condition of anonymity.
None of the three entities have submitted EoIs, they said, adding that if the bids are not received by the deadline, proceedings for liquidation will begin.
The Hinduja group has a presence in automobiles, financial services, and oil and gas, while the Synergy Group, controlled by 69-year-old Bolivia-born billionaire Germán Efromovich, is engaged in aviation, energy, and telecom.
The identity of the Dubai-based fund could not be confirmed.
The Hinduja group is looking to acquire Jet Airways if it is indemnified from the airline’s legal liabilities, Gopichand P. Hinduja, co-chairman of the London-based group, had said in an interview last month.
“With our good relations and contacts in the Middle East and Gulf, we took the initiative to support and help,” Hinduja had said.
After showing initial interest in Jet Airways, the Hinduja group had backed out earlier.
Queries sent to Antonio Guizzetti, president of Washington-based Guizzetti & Associates, the legal adviser to Synergy Group, remained unanswered.
India’s foreign direct investment (FDI) laws cap investment in a local airline by a foreign carrier at 49%. Also, control of the airline should lie with Indian promoters, and a majority of board members must be Indian citizens.
Jet Airways was grounded on 18 April following an acute cash crunch.
On 20 June, the Mumbai bench of the National Company Law Tribunal (NCLT) admitted Jet Airways under the Insolvency and Bankruptcy Code (IBC).
Lenders to Jet Airways appointed Ashish Chhawchharia as the resolution professional for the insolvency resolution.
A consortium of 26 banks led by the State Bank of India has approached NCLT to recover dues of more than INB 8,500 crore. Jet Airways has a negative net worth and accumulated losses of more than INR 13,000 crore over the past few years.
(Source: Mint)
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