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More than a year into the insolvency process, Jet Airways finally gets bids

Two separate consortiums submitted their bids on July 21

July 22, 2020 / 09:33 PM IST

Thirteen months after it was admitted to the insolvency courts Jet Airways has finally got, not one, but two bids.

The bids were submitted on July 21, when the deadline lapsed.

The bidders, who were among the four suitors shortlisted earlier, are two separate consortiums.

The first consortium is of Flight Simulation Technique Centre Pvt Ltd, Big Charter Pvt Ltd, and Imperial Capital Investments LLC. 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.

They will square off against the second consortium that consists of London-based financial services firm Kalrock Capital and entrepreneur Murari Lal Jalan.

Also Read: This former pilot now wants to make Jet Airways fly again

Sources close to both the consortiums confirmed their bids to Moneycontrol.

The two other suitors who have opted out of the race are Alpha Airways and Canadian investor Sivakumar Rasiah.

Also Read: Jet Airways insolvency: The good, the bad and the ugly

Jet Airways, which stopped operations in April 2019, owes banks - led by State Bank of India - over Rs 8,000 crore. Furthermore, claims of over Rs 30,000 crore have been made on the airline.

The insolvency process began in June 2019, and the airline did manage to get a long list of suitors, but none of them submitted a resolution plan. All was deemed lost, especially after COVID-19 struck earlier this year, and the aviation sector globally buckled under it.

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: Jul 22, 2020 07:45 am