Synergy Groups Submit Fresh Bids for Jet Airways

• Jet Airways stocks rose for the 5^th consecutive day after getting media’s attention that potential bidders are preparing to submit bids on or before 15^th
• They have a negative net worth and losses are more INR 13,000 crores.
• Hinduja group is willing to acquire Jet Airways if it is indemnified from the airline’s legal liabilities.

26 banks led by State Bank of India have dues more than INE 8500 crores on Jet Airways which has completed 180 days of insolvency. The airlines are also lagging behind the corporate insolvency process by another 90 days. The banks approached NCLT to recover the dues.

3 lenders are said to monetize and pay the dues of several banks and try to revive the airlines. London-based Hinduja Group, South America’s Synergy Group, and a Dubai-based fund are the potential bidders for the bankrupt airlines.

Lenders to Jet Airways have been extending deadlines to submit an expression of interest (EoI) several times. Previously proceedings were to be done on 6^th January but the revised dates are now 15^th January. Lenders are unwilling to give any further time. None of the 3 entities have submitted EoIs, and if the bids are not received by the deadline, proceedings for liquidation will begin.

South America’s Synergy Group is unhappy with the response of the Directorate General of Civil Aviation (DGCA). DGCA made it very clear that they will give clarity on slots that will be available to Jet Airways only if they get any viable plan by the interested parties but Synergy Group wants pre-clarity before submitting any kind of bid.

Resolution professional of Jet Airways, Ashish Chhawchharia informed bankruptcy tribunal that 2 new investors have shown interest in investing in the airlines. Synergy Group is the first bidder that has expressed interest in the airlines and the issue with them is that they were seeking more clarity on available slots as well as domestic and international routes from the ministry.

As the deadline approaches, 3 parties are very close in submitting their respective bids. Let’s hope that Jet Airways have a happy ending as they have already faced a lot of trouble due to cash unavailability.

We are yet to see whether this airline will be saved from liquidation or it will face even more difficulties. Everything comes down to 15^th Jan (8 days remaining).