Jet Airways crisis: Airline fails to attract new bidders during third extended deadline

Jet Airways that is undergoing insolvency proceedings has failed to attract any new bidders during the extended period for submission on initial bids. This is the third time lenders extended the deadline after August 3 and 10. The third deadline for submission of Expression of Interest (EoI) ended on August 31.

With no new bidders coming forth, the grounded airline has only three entities that had put in initial bids earlier, which are Russian Fund Treasury RA Partners, Panama-based investment firm Avantulo Group and South American conglomerate Synergy Group Corp.

A source told news told news agency PTI, "No new EoIs have been received," while another said, "Now, the deadline is unlikely to be extended further. The plan will be to go ahead with the three entities that had submitted their EoIs."

Jet Airways' Committee of Creditors (CoC) extended the deadline for submission of EoIs on August 26.

In the second round of submission of EoIs that ended on August 10, energy baron Anil Agarwal's family trust-backed Volcan Investments, Russian Fund Treasury RA Partners and Avantulo Group had shown interest. However, Volcan backed out a day after publicly announcing its interest in the airline.

After the August 10 deadline, Synergy Group Corp reportedly evinced interest in the airline.

The Synergy Group owns a majority in Colombian carrier Avianca Holdings, which has a codeshare partnership with Air India.

Etihad Airways, which owns 24 per cent stake in Jet Airways, did not submit any bid.

In June, Ashish Chhawchharia was appointed as the resolution professional to manage the affairs of Jet Airways, which shuttered operations in April. The airline has liabilities worth over Rs 26,000 crore.

(With PTI inputs)

Also read: Synergy Group Corp plans to pick up 49% stake in Jet Airways; final date for bids extended till Aug 31

Also read: Jet Airways' lenders to discuss Rs 10 crore interim funding, initial bids at Monday meeting