Synergy Group, RA Treasury make the cut for reviving defunct Jet Airways

The resolution professional (RP) of Jet Airways has shortlisted South America-based Synergy Group and Russian fund RA Treasury from the three expressions of interest (EoI) that were submitted for the revival of the defunct airline, sources aware of the development said. Panama-based Avantulo Group’s EoI failed to make the list.

The two shortlisted entities will have to sign non-disclosure agreements after which they will get access to all the data pertaining to Jet. Subsequently, they will do due diligence and submit their resolution plans for the airline, sources said.  

The last date for submitting resolution plans to the RP is October 14, and to the adjudicating authority, the National Company Law Tribunal, it's likely to be October 28. 

Avantulo Group and RA Treasury were the first ones to submit their intent. While billionaire Anil Agarwal’s family trust Volcan Investment had put in an exploratory EoI, it opted out of the race two days later. Synergy Group submitted an EoI for the airline subsequently, raising hopes of its revival.  

Recently, in the third committee of creditors (CoC) meeting, the lenders and the RP, with hopes of getting more interest for Jet, extended the deadline for submitting EoIs till August 31, but failed to get any new EoI.

Synergy Group is eyeing a 49 per cent stake in Jet as the regulation currently allows a foreign airline to buy a maximum of 49 per cent in a domestic airline. 

It will also discuss co-investment options with its lenders and infrastructure companies, the group’s advisor had said. Synergy Group owns a majority stake in Avianca Airlines, South America’s second-largest airline.

The RP has so far received claims of Rs 30,558 crore from financial creditors, operational creditors, and employees. In the revised claims data put out by the RP, of the total claims of Rs 30,558 crore, Rs 12,555 crore have been accepted while Rs 11,995 crore worth of claims have been rejected. The remaining claims of Rs 6,055 crore are under verification. In terms of the number of claims, Jet has received 18,596, of which 13,911 have been admitted.

Jet was admitted under the insolvency process on June 20 after bankers failed to find any takers for the grounded airline despite months of negotiations. Jet stopped flying on April 17, leaving over 14,000 employees in the lurch.

Shares of Jet went up almost 5 per cent during the day and closed at Rs 39.60.