Vedanta chairman Anil Agarwal's Volcan Investments shows interest in Jet Airways

Jet Airways sale suffers setback as two potential investors back out

Jet Airways sale suffers setback as two potential investors back out

Mining baron Anil Agarwal has submitted an expression of interest (EoI) to revive Jet Airways which has been grounded since April 17 due to a severe liquidity crunch, leaving thousands of employees jobless.

Panama-based fund Avantulo Group is one of the three entities which have submitted EoIs said another source.

However, the lenders of Jet Airways are finding it hard to sell the airline.

In a statement by the Agarwal's family trust-led Volcan, the company said, "The EoI for Jet Airways by Volcan was exploratory in nature".

The United Arab Emirates-based airline which owns 24 per cent stake in Jet Airways, did not submit an expression of interest and neither did the Indian business giant the Hinduja Group. Since the RP did not receive any EoIs, the last day to submit the bid the EoI was extended to August 10.

"Since then, Etihad has consistently and constructively sought and advanced solutions to help resolve Jet's issues", the airline said in a statement.

Separately, Abu Dhabi's Etihad said it was not interested in reinvesting in Jet because of unresolved issues concerning the Indian airline's liabilities.

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"Etihad remained engaged in the process, but despite the endeavours of everyone involved there remained very significant issues relating to Jet's previous liabilities", Etihad Airways said in a statement.

"Regrettably, in these circumstances, it was neither feasible for nor responsible on our part to reinvest in Jet at this time", the UAE flag carrier said.

Resolution professionals are examining the EOIs and are likely to announce the names that make the cut on August 13, according to a source familiar with the matter.

"Naresh Goyal, the promoter of the airline held 51 per cent stake".

Currently, the airline is under the NCLT process, under which a commitee of creditors has invited EoI from potential bidders. "Jet Airways is facing claims of Rs 24,887 crores from various creditors". Yes Bank has claimed Rs 1,084 crore, followed by PNB's Rs 963 crore and IDBI Bank's Rs 594 crore, according to a PTI report.

Apart from this, authorized representatives of workmen and employees have made 11,965 claims of Rs 735 crore, the RP said, adding other creditors, including other financial creditors and operational creditors, have made 121 claims amounting to Rs 1,105 crore.

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