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Two consortiums propose to restart Jet Airways, although somewhat differently
Photo Credit: Reuters

Jet Airways has attracted bids, finally, after spending more than a year in the insolvency resolution process.

Two of the four shortlisted bidders have submitted resolution plans to acquire bankrupt Jet Airways, a person in the know told VCCircle.

The consortium that aims to restart Jet with five single-aisle aircraft consists of Flight Simulation Technique Centre Pvt. Ltd, Mumbai-based Big Charter Pvt. Ltd, and Abu Dhabi-based Imperial Capital Investments LLC. Flight Simulation was founded by pilot-turned-entrepreneur Sanjay Mandavia.

The other consortium proposing to start the airline with 27 wide-bodied aircraft consists of financial advisory firm Kalrock Capital and Murari Lal Jalan, a UAE-based entrepreneur. 

The resolution plan submitted by Kalrock is understood to have the backing of the former top management of Jet.

Both the resolution plans may require banks to take a haircut of over 95%.

The Committee of Creditors led by State Bank of India (SBI) is expected to meet in the coming week to decide the winning bidder.

Ashish Chhawchharia, the resolution professional, did not respond to the queries.

Earlier this month, lenders extended the deadline to bid for the bankrupt carrier from July 11 to July 21.

Jet, once India’s largest private airline, has been going through an insolvency resolution process for more than a year.

The airline was founded by businessman Naresh Goyal, who is now under the scanner of various government agencies for alleged mismanagement and diversion of funds related to Jet.

Jet owes more than Rs 8,000 crore ($1.08 billion) to banks and is facing claims of Rs 24,887 crore from various creditors including banks, suppliers and employees. The bankruptcy tribunal has admitted claims worth Rs 14,000 crore.

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