Jet gets second EoI after South America-based Synergy group, stocks gain

Jet Airways has received a second expression of interest (EoI) for its revival. This comes after South America-based Synergy Group submitted an EoI for Jet late last week. The Resolution Professional of Jet informed the bankruptcy tribunal — National Company Law Tribunal (NCLT) — that they have received two EoI’s so far and the second EoI they have received is from a non-aviation company, with high net worth. 

Moreover, they are expecting a few more EoIs to come in before the deadline ends. However, there is no clarity on whether the Hinduja Group will bid for Jet. There were reports that the Hinduja Group would also apply but the sources say this is yet to happen.

It was earlier supposed to end on January 6, however, the lenders decided to extend the deadline if anyone wants to submit an EoI for the defunct airline. 

Meanwhile, the NCLT has directed the lenders to release the corporate insolvency resolution process (CIRP) funds to the resolution professional to run the company as a going concern otherwise they will be liable to contempt proceedings against them. The Bench has also asked the members of the committee of creditors to be present before the Bench in the next hearing scheduled on January 19.

Moreover, the counsel informed the tribunal that Synergy Group is confident of getting slots from the Ministry of Aviation, hence they submitted fresh EoI for the defunct airline. 

Earlier, in the first round of bidding, Synergy had questions for the civil aviation ministry on availability of slots in the domestic and international routes. It wanted answers to these before giving a resolution plan. The ministry wanted a resolution plan on the table before giving any assurance on slot allocation.

Synergy had given an EoI for Jet in the first round of bidding. However, it failed to give a debt resolution plan for the airline company, even after getting several extensions. The lenders subsequently decided to call afresh for EoIs. Synergy is led by Bolivian-born Germán Efromovich. It owns majority stake in Avianca Airlines, South America’s second-largest airline.

Jet was admitted under the insolvency process on June 20, 2019, after its bankers failed to find any takers despite months of negotiations. The airline stopped flying on April 17; it had around 14,000 employees on that date.

Creditors claim on the airline are for Rs 36,090 crore, of which Rs 14,640 crore had been admitted as on October 20. Jet has completed 180 days under insolvency proceedings, which have been extended for another 90 days.

Jet’s share price gained almost 5 per cent on Wednesday to close at Rs 39.50 at the BSE.