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Jet Airways insolvency: A last-minute twist forces lenders to give suitors more time

The development comes after the consortium led by Flight Simulation Technique Centre upped its offer. The new deadline is unclear

September 29, 2020 / 11:17 AM IST
Jet Airways owes banks nearly Rs 8,000 crore.

Jet Airways owes banks nearly Rs 8,000 crore.

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Just when one thought that Jet Airways is close to getting a new owner, there's a new twist in the race for its ownership.

Sources told Moneycontrol that the consortium led by Flight Simulation Technique Centre (FSTC) upped its offer on September 28, sending the Jet Airways lenders again in to a huddle.

The consortium also includes Big Charter, and Imperial Capital Investments. Both FSTC and Big Charter are led by aviator-turned-entrepreneur Sanjay Mandavia.

Imperial Capital is an investment banking and wealth management company based in Dubai.

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The Committee of Creditors (C0C), which consists of the lenders, has now given time to the second consortium, if it wants, to revise its resolution plan. The second consortium is of London-based financial services firm Kalrock Capital and entrepreneur Murari Lal Jalan.

Till now, the Kalrock Capital-led consortium was said to be ahead in the race.

"The two sides have been given a few more days to resubmit their plans. They will be asked to make a presentation, and the voting will happen post that," a senior executive told Moneycontrol.

It is yet not clear what the  new deadline is.

State Bank of India is the lead lender and the most prominent member of the CoC. Jet Airways owes banks nearly Rs 8,000 crore. Its total claims, which include unpaid salaries of employees and dues of vendors, amount to about Rs 25,000 crore.

Prince Mathews Thomas
Prince Mathews Thomas heads the corporate bureau of Moneycontrol. He has been covering the business world for 16 years, having worked in The Hindu Business Line, Forbes India, Dow Jones Newswires, The Economic Times, Business Standard and The Week. A Chevening scholar, Prince has also authored The Consolidators, a book on second generation entrepreneurs.
first published: Sep 28, 2020 10:37 pm