JetAir insolvency case: Etihad and Vedanta boss back out of bidding process

Jet Airways, which shuttered operations on April 17, is undergoing insolvency proceedings and at least three entities had put in initial bids for the carrier.

In a statement, Etihad said it declined to lodge an Expression of Interest (EoI) to reinvest in Jet Airways because of unresolved issues concerning the airline’s liabilities. The deadline for submission of EoIs was August 10. While noting that it was “neither feasible for nor responsible of Etihad to reinvest in Jet Airways at this time, Etihad asserted that the decision does not affect its commitment to India.

“Since then, Etihad has consistently and constructively sought and advanced solutions to help resolve Jet’s issues. But as a minority shareholder, Etihad has had limited capacity to secure required changes,” it said. The national carrier of the UAE picked up 24 pc stake in Jet Airways in 2013. Earlier this year, Etihad said it made a conditional expression of interest to reinvest in the Indian airline as a minority stakeholder, with an agreed partner, but unfortunately this did not materialise.

“Etihad remained engaged in the process, but despite the endeavours of everyone involved, there remained very significant issues relating to Jet’s previous liabilities,” the statement noted. “Regrettably, in these circumstances, it was neither feasible for nor responsible of Etihad to reinvest in Jet at this time. This decision is unrelated to and does not affect Etihad’s continued commitment to India, the airline’s largest single market, and one which it has served for 15 years,” it said.

A day after publicly announcing its interest in JetAir,mining baron Anil Agarwal on Monday said he is no longer interested in pursuing the same. On Sunday, Agarwal’s investment company Volcan Investment, had submitted an expression of interest in buying Jet Airways. But in a statement Agarwal said, “the EoI for Jet Airways by Volcan was exploratory in nature. On further evaluation and considering other priorities, we intend to not pursue this further.” It had submitted an EoI for Jet as it wanted to understand the business scenario for the company and the industry. The move leaves two unnamed financial investors including Panama-based fund Avantulo Group, in the fray.