Jet gets three EoIs, Etihad backs out; applicants to be named on Tuesday

Three entities are learnt to have submitted expressions of interest (EoIs) for the grounded Jet Airways, which is currently in the bankruptcy court. Sources in the know said Abu Dhabi-based Etihad Airways had not put in an EoI till the 4 pm deadline on Saturday.  

Panama-based fund Avantulo Group is one of the three entities to have expressed an interest, an official said. While the identity of the other two entities could not be ascertained, they are all believed to be foreign players. 

The deadline for submitting EoIs was August 10, after an extension was granted last Saturday as potential bidders had sought additional time for due diligence. 

Even as Etihad was expected to bid for Jet Airways, a source said it eventually backed out. “This process is being managed by the resolution professional (RP) and at this time, out of respect for the process, Etihad Airways has no comment to make,” the airline, which had partnered Jet, said. 

Avantulo Group, which is believed to have investments in diverse sectors, submitted a letter earlier this week, one of the sources in the know said. The EoIs will now be scrutinised by the RP and submitted to the committee of creditors (CoC) in the next meeting. The CoC will decide whether the groups are eligible to submit bids for revival. 

In a statement to the exchanges, the RP said the provisional list of prospective resolution applicants would be issued on August 13. The possible date of submitting a resolution plan to the adjudicating authority — National Company Law Tribunal (NCLT) — is September 27.

Road to insolvency

Apr 17: Debt-ridden Jet Airways shuts operations

Jun 18: SBI files insolvency plea against the airline

Jun 20: NCLT admits the plea; appoints interim RP

Jul 16: First CoC meeting discusses criteria for prospective bidders, interim funding

Aug 3: Deadline extended to submit EoI

Jet Airways shut operations on April 17 and was referred to the insolvency court in June after the lenders’ consortium, led by SBI, failed to find any suitor for the debt-ridden airline. The bankruptcy tribunal wants the insolvency process to be expedited as the matter is of national importance. Currently, a legal tussle is on for the airline’s headquarters. The owner of the Jet Airways headquarters wants the RP to vacate the premises as the rent lease for the property got terminated for failing to pay rent. The tribunal has asked the parties to settle the matter amicably.

The RP has received claims to the tune of Rs 24,000 crore from the Jet Airways lenders, vendors, travel agents, and employees. While the RP has admitted 33 claims from banks worth Rs 8,462 crore, it is verifying Rs 15,044-crore claims from operational creditors and staff.