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Home / Business / Jet Airways News: Anil Agarwal withdraws from the Jet Revival bid; Etihad says he stayed away because of the airline's obligations

Jet Airways News: Anil Agarwal withdraws from the Jet Revival bid; Etihad says he stayed away because of the airline's obligations



NEW DELHI: In a major blow to Jet Airways' resurrection hope, mining and metal baron Anil Agarwal's family trust Volcan Investments (VI) has drawn its expression of interest (EOI) for the grounded airline. We were among three international entities that had submitted the EOI for the Jet Till deadline last Saturday, and now two little-known players – Avantulo Group and RA Creator – are in contention.

Volcan withdrew hours after Jet's 24% stake, Etihad said it did not submit an EOI due to "unresolved issues regarding Jet's obligations" and that "it is not possible or responsible for Etihad reinvesting in Jet at this time. "

Anil Agarwal said in a statement Monday: “The Volcanic EOI of Volcan was exploratory in nature. When we consider further and consider other priorities, we intend not to pursue this. Jet Airways was the pioneer of opening the sky in India after Air India .. a world-class airline with the finest team and connecting many global and domestic destinations. India is among the largest and fastest growing aviation markets in the world, and I am sure many airlines and investors will look at this opportunity. "

Just hours before Agarwal, Etihad gave a detailed statement explaining why it stayed away from Jet despite having an "agreed partner" ̵

1; citing the UK-based Hinduja Group – to reinvest in Jet " because of unresolved questions about the Jets' obligations. "

The resolution professional (RP) who handles the Jet case after SBI took the airline to insolvency court, has so far received claims for payment of about 24,000 crore from Jet by various stakeholders. It has accepted claims from 33 banks for Rs 8,462 crore and is investigating the remaining debts sought by employees and other creditors.

Jet stopped flying on April 17-18, 2019. In May, Etihad had "confirmed its interest in reinvesting in Jet" under several conditions such as getting an exemption from open offers and banks taking a big haircut on their loans . When these tough conditions were not met, the Abu Dhabi-based airline stayed away from the Jet Revival bid.

“Etihad bought a 24% stake in Jet in 2013, at a time when Jet needed significant financial support. Since then, Etihad has consistently and constructively sought and advanced solutions to help solve the Jet problems. But as a minority shareholder, Etihad has had limited capacity to secure necessary changes, ”states Etihad's statement.

“Earlier this year, Etihad presented a conditional expression of interest in reinvesting in Jet as a minority stakeholder, with an agreed partner, but unfortunately it was not realized. Etihad remained involved in the process, but despite the efforts of everyone involved, there remained very important issues related to Jet's previous commitments. Unfortunately, under these circumstances, it was neither possible nor responsible for Etihad to reinvest in Jet at this time. "

However, the decision to stay away from Jet & # 39; s revival process is not the "continued commitment to India, the airline's largest single market, and one that it has served for 15 years. Etihad flies between Abu Dhabi and 10 destinations in India , and is continuously increasing the frequency of flights, the size of the aircraft, the quality of the product and the international route connections it offers beyond the center of Abu Dhabi. "

Anil Agarwal closed the statement saying, “We have raised over $ 25 billion overseas and invested in India; created lakhs of jobs and contributed over Rs 2 lakh crore to the Indian government through various taxes and fees over the last 6 years. I am passionate about taking my country further and building on the great potential. "


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