Tuesday, 28 June, 2022
HomeEconomyBidders for Jet Airways still not ready as liquidation threat looms

Bidders for Jet Airways still not ready as liquidation threat looms

Synergy Group & Prudent ARC had submitted expressions of interest for Jet Airways in January but haven’t yet cobbled together bidding groups.

Text Size:

Mumbai: Bankrupt carrier Jet Airways India Ltd., once the nation’s biggest by market value, faces fresh warning signs as a deadline to avoid liquidation looms. Creditors will likely be forced into extending a Feb. 17 deadline for the sale of the airline as the shortlisted bidders have yet to form bidding groups, according to people familiar with the matter. Time is tight as creditors may have to push the company into liquidation if there is no resolution by around mid March.

In a stunning fall, the Mumbai-based airline was forced to suspend operations last year after it fell victim to a cut-throat price war initiated by a slew of budget carriers. It has missed payments to banks, staff and lessors.

The two shortlisted bidders Synergy Group Corp. and Prudent ARC Ltd. had both submitted expressions of interest in January, but haven’t yet cobbled together bidding groups.. Synergy is seeking a local partner for its bid, while Prudent is looking to team up with a company with international aviation experience, the people said, asking not to be identified because the matter is private.

Short of a court judgment to the contrary, creditors are mandated by India’s nascent bankruptcy law to push Jet Airways into liquidation if the bankruptcy process extends beyond 270 days from its admission on June 20, 2019. The 270-day period for Jet Airways is set to expire around March 16, limiting the time within which the airline can be sold outside of a liquidation process.

A third bidder had also submitted an expression of interest, a precursor to bidding, but had been disqualified by lenders on the grounds that it did not meet the threshold bar set for potential bidders.

Ashish Chhawchharia, the court-appointed resolution professional overseeing the bankruptcy of the company, didn’t immediately respond to requests for comment.

Calls to the listed office phone number of German Efromovich, the founder of Synergy Group, went unanswered. A spokesman for Prudent ARC declined to comment. –Bloomberg 


Also read: Boeing plans trials of its Super Hornet jets on ski-jump ramp to meet Indian requirements


 

Subscribe to our channels on YouTube & Telegram

Why news media is in crisis & How you can fix it

India needs free, fair, non-hyphenated and questioning journalism even more as it faces multiple crises.

But the news media is in a crisis of its own. There have been brutal layoffs and pay-cuts. The best of journalism is shrinking, yielding to crude prime-time spectacle.

ThePrint has the finest young reporters, columnists and editors working for it. Sustaining journalism of this quality needs smart and thinking people like you to pay for it. Whether you live in India or overseas, you can do it here.

Support Our Journalism

Most Popular

×