Volcan Investment, the family trust of Vedanta group chairman Anil Agarwal, has sought an expression of interest (EoI) for grounded Jet Airways.
“Volcan Investment, investment company for Anil Agarwal, in an exploratory move, has sought an EoI for Jet Airways, to understand the business scenario for the company and the industry. This EoI is in no way linked to Vedanta,” said the trust.
Volcan, which owns 100 per cent stake in Vedanta Resources, is one of the three interested parties which have expressed interest in the airline. Sources said Panama-based investment company Avantulo Group, and Russian Fund Treasury RA Creator also showed interest in Jet. The deadline for EoI was August 10.
Etihad Airways, which owns 24 per cent stake in Jet, has not yet submitted an EoI for the airline. Ashish Chhawchharia, Jet Airways’ resolution professional (RP), will now evaluate the bids to decide on their eligibility and will shortlist names by early next week. The RP last month had invited EoIs to sell assets of the grounded Jet that stopped flying mid-April. The final bids are to be submitted by September 12.
The interim resolution professional (IRP) for Jet Airways had received claims worth Rs 24,887.93 crore against the carrier till July 4, according to the list of creditors uploaded on the company’s website. Of these claims, the IRP has so far admitted claims worth Rs 8,462.78 crore and rejected claims of over Rs 1,380 crore. Claims worth over Rs 15,000 crore are pending verification.
Domestic banks and financial institutions have claimed over Rs 6,441 crore, while foreign banks have claimed around Rs 1,569 crore. Claims of workmen and employees stood at Rs 443.56 crore. Operational creditors, other than workmen and employees, have submitted claims worth Rs 12,373.59 crore. These claims are yet to be verified by the IRP.
On June 18, two months after Jet Airways shut down its operations, banks decided to refer the airline to the bankruptcy court — National Company Law Tribunal (NCLT) — for resolution under the Insolvency and Bankruptcy Code, after the bidding process failed to identify a suitable ‘white knight’.
The fate of the airline, which shut down operations on April 17, 2019 after it ran out of cash, will be decided as per the June 7 circular of the Reserve Bank of India. However, sources said the creditors are unlikely to get the full amount as the airline does not have many tangible assets left.