Jet Airways Insolvency: Debt hit Indian airline company plans to sell Netherlands business to KLM

Jet Airways Insolvency: Debt hit Indian airline Jet Airways Ltd has said that it had entered into a deal with Dutch airline KLM that could lead to a sale of its assets in the Netherlands, Reuters reports. The report further says that if the deal is finalised, it will only involve a sale of part of the company`s business activities and not impact the shareholding pattern, Jet said in a statement dated January 16. KLM is a part of Air France KLM.

Yesterday, Jet Airways hit the headline for getting an expression of interest (EoI) from two suitors - South America’s Synergy Group and New Delhi-based Prudent ARC Ltd. If this was a good news for Jet Airways, there was a bad new as well because many questiona around the revival of Jet Airways were still looming around.

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Despite these moves, the creditors have not abandoned their efforts at finding a suitable buyer to takeover and revive Jet Airways. The only thing is there is no time left. The last date to submit the expression of interest has passed by and apart from Synergy Group, there are no other bidders. The Hinduja Group has been showing some interest but have not submitted the EoI. There is very little likelihood of the CoC extending the deadline for submission of EoI, unless the Hindujas specifically approach the RP and show some seriousness.

While Synergy submitted its interest on January 6, little-known Prudent ARC put in the EoI on January 15, the deadline. The interest would come as a relief for Jet Airways lenders, who are hoping to recover more than Rs 8,000 crore in dues. The airline’s total liability is over Rs 20,000 crore. The airline suspended operations in April. The two suitors will now go through the eligibility test. If they clear the hurdle, they will need to submit bids by February 17.