Debt-laden Jet Airways receives resolution plan from two bidders

Jet Airways has received resolution plans from at least two of the four shortlisted entities that made the cut in the fourth round, thereby raising hopes for a revival of the beleaguered airline.

According to sources, a consortium — comprising Imperial Capital, Flight Simulation Technique Centre, and Big Charter — have placed a bid for Jet, while the other consortium is led by Kalorck Capital.

“We feel our proposal is a win-win situation for all stakeholders, as it takes care of interests of both financial creditors and employees. We will make equity investment and have received support from Xponentia Capital Partners. We want to make Jet operational to serve the domestic and medium-haul markets. We want to have single type of fleet and we will take a decision based on market dynamics’, said Capt. Sanjay Mandavia, chief executive officer of Flight Simulation Technique Centre.

Jet, which has been under insolvency since June last year, had received 12 expression of interests in the fourth round, after the first three rounds failed to garner any financial bids from the investors. However, only four had made the cut. UK-based Kalrock Capital, Canadian entrepreneur Sivakumar Rasiah, Abu Dhabi-based Imperial Capital Investments, and Alpha Aviation had been shortlisted.

The resolution plans submitted by the two bidders will be evaluated by a sub-committee of lenders that will examine the viability of the plan, experience of the bidder, proposal related to payment of liabilities and equity infusion, if any. The committee’s recommendations will be shared with all lenders and then proposals will be taken up for vote by the committee of creditors.