InvestorQ : What is the status of bids for Jet Airways and are there some likely bidders?
vaishnavi mhatre made post

What is the status of bids for Jet Airways and are there some likely bidders?

user profile image
Mary Joseph answered.
3 months ago

Ashish Chhawchharia, the designated resolution professional for Jet Airways has zeroed in on a final consortium of 4 potential bidders. These bidders are expected to submit a binding bid for Jet Airways after due diligence of the books of Jet Airways is completed. The NDA has already been signed by these following bidders with the resolution professional.

Firstly, UK’s Kalrock Capital Partners is bidding along with Dubai-based Murari *** Jalan. Secondly, Abu Dhabi-based Imperial Capital Investments LLC is bidding along with Haryana based Flight Simulation Technique Centre and Mumbai-based Big Charter. Thirdly, Canadian entrepreneur Sivakumar Rasiah is bidding along with Kolkata’s Alpha Airways.

The room for error is quite limited for the resolution professional this time around as this is the fourth attempt to find a suitor to revive the ailing airline. One concern is that most of the aircraft have been repossessed by the aircraft lessors and that would have substantially depleted the value of Jet Airways. Falling brand value is another concern for Jet.

It may be recollected that Jet has not flown since it was grounded in mid-April 2019 following an acute funds crunch. As a special case, the airline was admitted by the Mumbai bench of the NCLT under the Insolvency and Bankruptcy Code. However, the big challenge in these types of businesses is the realizable value. Jet owes Rs.8000 crore to a clutch of banks.