After Synergy group emerged the only bidder for the now defunct Jet Airways, there are reportedly two new entities that have expressed their interest in reviving the airline. With new two prospective investors, the committee of creditors (CoC) of Jet decided to call fresh expressions of interest (EoI), Business Standard reported.
This news is coming right after the deadline for corporate insolvency resolution process (CIRP) to be completed got over. December 16 was the day when the 180-day timeframe given under the Insolvency and Bankruptcy Code legislation ended.
It was in the month of April that the airline suspended operations due to fund crunch and later in June the lenders approached the National Company Law Tribunal.
To recap the happenings at the NCLT, the Committee of Creditors or CoC was left with just one bidder for the airline, the Synergy Group from South America, which is already running an airline in that continent.
While Synergy went through the regular processes of conducting a due diligence etc., their actual proposal to revive the airline did not reach the resolution professional (RP) on time. They have submitted a draft resolution plan only a week before the deadline.
Now that the RP has informed the CoC that there are two more parties interested, the matter will be put up before the NCLT for a possible extension of the last date for resolution. Again, as per the Act, an extension not exceeding 90 days can be given beyond the 180-day period. Reports indicate that one of the two new entrants to the scene, one is from West Asia and the other is an Indian-entity backed by an investor from the UK.
It is now expected that the CoC will hold a meeting to seek the revival proposals from these two entities apart from taking a view on the draft proposal submitted by the Synergy Group. Assuming that NCLT agrees to the extension, it will be for another 90 days. Within that period, the offers have to be scrutinized, the parties met with and the terms of the resolution agreed to before the final status can be presented before the NCLT for passing the necessary orders.
There will be a voting at the next meeting of the CoC on restarting the bid process, which will happen on December 20 and the results will be known the next day. It is understood that the interested entities will be offered just 15 days to submit their expressions of interest. If found in order, they may get a month more to make their detailed proposals for settling the dues to the lenders and for restarting the airline’s operations clear to the CoC.
The necessary affidavit for the 90-day extension in view of these developments has already been filed with NCLT.
As far as the Synergy Group’s bid is concerned, they may have to resubmit their proposal, since the December 16 deadline has passed. Meanwhile, a representative from the group is expected to appear before the NCLT to explain their plan for Jet Airways. Reports indicate the company has raised certain issued with regard to the slots at different airports, which needs to be resolved at the DGCA/Ministry of Civil Aviation level.