Suitors for Jet Airways narrow down to four from 12, final list on June 10

RP is set to present resolution plan, if any, to adjudicating authority on July 23

Four of the 12 expressions of interest (EoIs) submitted for the beleaguered Jet Airways in the fourth round have made the cut, based on the bid criteria set by lenders and the resolution professional’s team.
 
According to people in the know, UK-based Kalrock Capital, Canadian entrepreneur Sivakumar Rasiah, Abu Dhabi-based Imperial Capital Investments, and Alpha Aviation have been shortlisted.
 
This is a provisional list, with the final one set to be issued on June 10. Shortlisted entities will then be asked to come up with a resolution plan by July 10. The RP will present the resolution plan, if any, to the adjudicating authority on July 23.
 
Synergy Group — based in South America — had been in the race for long, but failed to provide any revival plan. It failed to make the cut this time, despite having expressed its interest once more.

 
This was the fourth attempt by the RP and team to find buyers. In the last creditors’ meeting, lenders decided to call for fresh EoIs with some revisions in the bid criteria to attract more potential buyers. Interested parties with net worth of Rs 500 crore were allowed to submit EoIs this time.

This decision was taken as lenders felt liquidation would not yield any value for them. Earlier, the bankruptcy tribunal had extended the corporate insolvency resolution process (CIRP) by 90 days. Jet’s 270-day CIRP ended in mid-March. The NCLT had already made it clear that the lockdown phase would be excluded from the CIRP period.
 
The revised timeline for completion of the CIRP is now August 21, 2020, subject to no further extension in the lockdown by the Maharashtra or Central government, the RP informed the exchanges earlier this month. Experts said that with the aviation industry going belly up, it was an appropriate time to negotiate the best of terms and deals with original equipment manufacturers, leasing companies, and maintenance providers.
 
Aviation fuel, too, is in an attractive band. With cost of operations being low as never before, profitability potential looks promising even if passenger load factor heads south.
 
As of March, over 20,000 claims had been made totaling Rs 37,000 crore. Workmen and employees have claimed more than Rs 1,400 crore, while financial creditors have claimed over Rs 11,000 crore from the defunct airline.