Though moving one step at a time, the Jet Airways insolvency case appears to be headed in a positive direction so far. As already reported through these columns, the Synergy Group from South America has emerged as the possible suitor though there were still some hurdles to cross before things crystallise.
The latest development is that the resolution professional (RP) appointed in the Jet Airways case has since organised meetings for the Group’s executives with the lenders to the airline and also with the officials at the Ministry of Civil Aviation.
These meetings could be very crucial if the resolution is to make any further progress. For one, the Synergy Group had made it very clear that though it is willing to make fresh investments to bring the airline back to operation, the lenders will have to take a large cut. In the proposed meetings with the lenders led by State of India, it might get clarified how much of a haircut the company is seeking and how much the lenders are prepared to accept. In the case of the Ministry of Civil Aviation, the thorny issue of the Synergy Group having interests in the airline business and therefore not permitted to hold more than 49% equity under the present laws and guidelines, exists. Will these be relaxed to accommodate this suitor identified after a lot of difficulty?
Another bit of information leaking in is that the RP has been able to identify a couple of Indian companies which would be prepared to partner with the Synergy Group, led by German Efromovich. The Group had earlier said they would like to associate with an Indian partner. The Group has already signed a non-disclosure agreement with the resolution professional. That means that it will have access to the books of Jet Airways to get first-hand knowledge on the airline’s strengths and weaknesses.
October 27 is the next significant date for the case since a proper resolution plan will have to be submitted by that date to the National Company Law Tribunal (NCLT) for its approval. The meetings to be held now over the coming week might pave the way for a resolution if there are no major hiccups.