Jet Airways lenders give third extension for EoI to August 31

Mumbai: The lenders to the defunct Jet Airways Monday for the third time extended the deadline for submission of expressions of interest for stake sale in the bankrupt airline to August 31 after a new bidder showed interest post-August 10 deadline. After the second deadline on August 10, there were three bids, but one opted out while the another one did not qualify, leaving just one in the race.

The decision to extend the deadline for EoIs was taken by the lenders at a meeting of committee of creditors held in the financial capital.

"The lenders have decided to extend deadline to submit EoIs till August 31," a banker said. The bidders in the second round included the energy baron Anil Agarwal's family trust-backed Volcan Investments, Russian Fund Treasury RA Partners and the Panama-based investment firm Avantulo Group.

However, Volcan opted out of the race a day after publicly announcing its interest in Jet, while Avantulo reportedly disqualified, leaving only the Russian fund. After the deadline, the South American conglomerate Synergy Group Corp reportedly evinced interest in the airline, forcing the RP to seek the lenders' nod to extend the deadline to August 31. The Synergy Group owns a majority in Colombian carrier Avianca Holdings, which has a codeshare partnership with the state-run Air india. Also, it can be noted Etihad Airways, which owns 24 percent stake in Jet, did not submit its bids.

This is the third time that lenders have extended the deadline submitting EoIs after the one on August 3 and 10. Besides, the meeting also decided that the resolution professional would seek additional funds from banks to recover some of the engines stuck at a maintenance, repair and overhaul (MRO) facility in Singapore, the source added.