Jet Airways takes off on Synergy Group buzz

Jet Airways (India) hit an upper circuit of 5% at Rs 37.65 after the media reported that South Americas Synergy Group has submitted a fresh bid for the Indian airliner.

Jan 07, 2020 08:01 IST capital market

The stock has surged 33.51% in last six trading sessions from its previous closing low of Rs 28.2 on 30 December 2019.

Synergy Group, a South American group has reportedly shown an interest in debt ridden Jet Airways by submitted a fresh expression of interest (EOI) for investment. Lenders to Jet Airways have set a final deadline of 15 January for the submission of expressions of interest. While Synergy wants Jets lenders to make a huge haircut on its debt of over ₹8,500 crore, it will also need to find an Indian partner for the acquisition, reports added.

Last month, media reported that UK-based Hinduja Group, run by brothers Gopich and Hinduja and Ashok Hinduja, is preparing a bid to buy the grounded air carrier. The group plans to submit an expression of interest by the 15 January deadline, signaling its intent to make a formal offer. Hinduja is seeking a partner to bid, the reports added.

Hinduja Group had earlier this year considered bidding for Jet Airways in partnership with Etihad, but Etihad jettisoned the proposal, dealing a severe blow to efforts aimed at rescuing the debt-laden airliner that has suspended flights for nearly two months.

After Jet Airways went bust in mid-April, the government temporarily allotted the hundreds of airport slots owned by it to other carriers, with an aim to contain soaring airfares in the peak holiday season.

Jet Airways was admitted for insolvency on 20 June 2019, after lenders failed to sell the grounded airline. The National Company Law Tribunal (NCLT) on 20 December 2019 allowed Ashish Chhawchharia, resolution professional (RP) for Jet Airways, to extend the corporate insolvency resolution process (CIRP) of the grounded airline by 90 days. Earlier this month, the RP had sought an extension for the resolution period after the Colombian Synergy Group failed to submit a business plan for the revival of Jet Airways by 16 December.

Jet Airways is debt ridden non operational airline company.

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