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EoI for Jet Airways exploratory in nature … we intend not to pursue this further, says Anil Agarwal

The deadline for EoI was August 10. Etihad Airways, which owns 24 % stake in Jet Airways, had already said it’s not interested in the airline.

By: ENS Economic Bureau | Mumbai | Published: August 13, 2019 3:25:13 am
Jet Airways, Jet Airways grounded, Jet Airways job loss, Volcan Investment, Vedanta group, Anil Agarwal, Jet Airways news, naresh goyal,  Etihad Airways, Indian express 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

Changing his plan in a day, Vedanta chief Anil Agarwal on Monday said he is no longer interested in pursuing the takeover of grounded Jet Airways.

On Sunday, Agarwal’s firm Volcan Investment had said it submitted an expression of interest in buying Jet Airways. But on Monday in a statement, Agarwal said, “the EoI for Jet Airways by Volcan was exploratory in nature. On further evaluation and considering other priorities, we intend to not pursue this further.”

It had submitted an EoI for Jet as it wanted to understand the business scenario for the company and the industry, the statement said. Sources said Panama-based investment company Avantulo Group, and Russian Fund Treasury RA Creator have also showed interest in Jet Airways. The deadline for EoI was August 10. Etihad Airways, which owns 24 per cent stake in Jet Airways, had already said it’s not interested in 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.

Read | Anil Agarwal’s family trust seeks EoI for Jet Airways, says ‘no link to Vedanta’

The RP last month had invited EoIs to sell the assets of 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 grounded airline till July 4, according to the list of creditors uploaded on the company’s website.

State Bank has made a claim of Rs 1,644 crore, including cash credit inclusive of interest, term loans and bank guarantees. Yes Bank has claimed Rs 1,084 crore, followed by PNB’s Rs 963 crore and IDBI Bank’s Rs 594 crore, according to a PTI report.

Operational creditors excluding workmen and employees have made a claim of Rs 12,372 crore, with the entire amount being under verification, while the workmen and employees have made a claim of Rs 443 crore which is also under verification.

Apart from this, authorized representatives of workmen and employees have made 11,965 claims of Rs 735 crore, the RP said, adding other creditors, including other financial creditors and operational creditors, have made 121 claims amounting to Rs 1,105 crore. 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 (RBI). —With PTI

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