While there were reports earlier this month that Jet Airways may have to go for liquidation with no serious buyer in sight and deadline for EoIs ending, two new expressions of interest (EoIs) have received by the resolution professional (RP). One is from a Russian fund called Treasury Creator and the other interested party could be the Synergy Group Corp, a South American organization.
Keeping these developments in view, the Committee of Creditors (CoC) has taken a decision to extend the deadline for submission of the EoI till August 31. It is learnt that the RP is holding discussions with the interested parties for a possible resolution.
On paper, the South American Synergy Group appears to be the better suitor. This is because the Group has the experience of having taken over an airline Avianca Airlines, which had been declared bankrupt in 2004 and not only turned it around but has made the airline into the second largest one in the South American continent. Avianca today flies 180 aircrafts, servicing 28 countries touching over destinations. Some of the key markets for the airline are Columbia, Peru and Ecuador. As of now, the Synergy Group has only shown its interest. Whether it will go through with the next stage after doing due diligence etc. remains to be seen. Previously, the Vedanta Group of Anil Agarwal submitted its EOI, but later backed off.
The CoC also cleared the release of $10 million towards ‘maintenance’ of Jet Airways till a solution is found. More funds may be needed to retrieve some aircraft engines which are struck at a repair shop and is not being released due to non-payment of the charges.
It has been meanwhile reported that the issue with the landlord of the building where Jet Airways had its head office has since been partially resolved.