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Jet Airways sale suffers setback as two potential investors back out

Published: August 12, 2019 20:57:32


Creditors’ hopes of resurrecting India’s Jet Airways  and salvaging some value from the bankrupt airline were dealt a fresh blow on Monday as two potential investors said they were no longer interested in putting money into the business, reports Reutersa.

The billionaire head of Vedanta, Anil Agarwal, whose family trust Volcan Investment had said it was looking at taking a stake in Jet, backed out on Monday.

Etihad Airways, which already owns a minority stake in Jet, also said it was not interested in reinvesting in the airline.

The announcements are a setback for creditors hoping to recover a portion of the more than $3 billion that the airline owes to its lenders, lessors, staff and other suppliers.

“The EOI (expression of interest) for Jet Airways by Volcan was exploratory in nature. On further evaluation and considering other priorities, we intend to not pursue this further,” Volcan said in a brief statement, a day after it had disclosed it had submitted an EOI for the airline.

The firm declined to provide any detail on its reasoning.

Separately, Abu Dhabi’s Etihad said it was not interested in reinvesting in Jet because of unresolved issues concerning the Indian airline’s liabilities.

“Etihad remained engaged in the process, but despite the endeavors of everyone involved there remained very significant issues relating to Jet’s previous liabilities,” it said.

 

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