South American, Russian firms shortlisted as final two bidders for Jet Airways: report

Jet Airways is getting closer to find a suitable buyer as the committee of creditors has finalised two of the three bidders who have submitted an expression of interest in the debt-laden airline. South American company, Synergy Group, and Russia's Treasury RA Creator have been shortlisted for submitting the final bids, reported Bloombergquint. Panama-based Avantulo Group, however, couldn't make it to the final list of bidder companies as it failed to submit eligibility documents.

The final bidders will be eligible to analyse financial data and other crucial documents related to the bankrupt airline, following which they can come up with a resolution plan. Synergy Group and Treasury RA Creator will have to submit the final resolution plan by October 14.

As per the requirement set by Jet creditors, an eligible bidder must have a net worth of Rs 1,000 crore. However, for financial investors, the eligibility limit is Rs 2,000 crore. Even after extending the deadline to submit initial bids thrice, Jet Airways failed to attract many bidders, and only three came forward with an expression of interest.

The grounded airline's liabilities continue to mount. As per earlier claims, Jet Airways had liabilities of over Rs 26,000 crore, which has now reportedly shot up to Rs 30,558 crore. Airline resolution professional (RP) Ashish Chhawchharia had admitted Rs 12,555 crore worth of claims. Synergy Group Corp, which owns a majority stake in Colombian carrier Avianca Holdings, the second-largest airline in Latin America, operates several airlines in South America. Russia-based Treasury RA Creator, which is an international financial organisation, has investments in several countries.

Meanwhile, Reuters reported that Jet Airways lenders will get less than 10% of the carrier's total outstanding dues in case the airline heads towards liquidation. The airline owes Rs 30,000 crore to the lenders, who will likely get only $300-$400 million (up to Rs 2,800 crore) from the sale of Jet's assets.

Edited by Manoj Sharma

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