The Hinduja Group is likely to make a bid to buy the now grounded airliner Jet Airways India Ltd., Business Standard reported.
Jet Airways stopped flying in April after it ran out of money for daily operations. The airline is undergoing resolution process under the Insolvency and Bankruptcy Code (IBC).
The UK based conglomerate, with diversified business interests including foundries, trading, motor vehicles, banking, call centres, and healthcare, is likely to submit an expression of interest by the 15 January deadline. The group is also seeking a partner for the bid.
Reports had emerged earlier this year that Hinduja Group was interested in bidding for Jet Airways in partnership with Etihad, but Etihad had rejected the proposal.
Earlier last week, the insolvency resolution professional (IRP) tasked with the resolution of bankruptcy of Jet Airways Ltd. called for fresh bids. The sixth meeting of Jet Airways’ Committee of Creditors (CoC), held on 17 December, had passed the resolution to seek fresh expression of interest (EoIs).
The National Company Law Tribunal (NCLT), while approving extension of Jet Airways’ insolvency resolution period by 90 days, also directed CoC to expedite their decision on seeking fresh EoIs after two new investors evinced interest in the grounded airline.
A South America based entity Synergy Group had expressed interest in bidding for the grounded airline but had sought more time for due diligence.
Under the resolution, State Bank of India and Punjab National Bank have claimed Rs 8230 crores while other creditors, like employees and lessors, are seeking Rs 6400 crores rupees from the airline, which is 24 per cent owned by Abu Dhabi’s Etihad Airways PJSC.
As you are no doubt aware, Swarajya is, all in all, a reader-subscription-backed business model and in order to make sure we build a media platform with only the best interests of India at heart, we need your backing.
And in challenging times like this, we need your support now more than ever—to continue bringing you stories that are often shrugged off.
For us to invest in quality reporting and continue bringing you the right stories, it takes a lot of time and money.
Partner with us, be a patron or a subscriber. We need your support, throughout.