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Anil Agarwal's Volcan Investments dumps Jet Airways a day after showing interest

BusinessToday.In     August 12, 2019

A day after showing intent to invest in troubled Jet Airways, Anil Agarwal-led Volcan Investments has withdrawn all efforts in the matter. In a statement released on Monday, the investment company said that it took the decision to back away from Jet based on its evaluations and other priorities.

Volcan Investments, the investment company under Vedanta Limited Chairman Anil Agarwal's family trust, had sought expression of interest (EoI) to understand the business scenario for Jet Airways and the industry.

"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," Volcan Investments said in its latest statement.

Jet Airways has received only three Expression of Interests (EoIs) for the stake sale of the bankrupt airline. Etihad Airways which owns 24 per cent stake in Jet has not submitted its bid on Saturday. It was the last day of the bidding process which was extended for a week on August 3.

Panama-based Avantulo Group have forwarded its EoI submission, sources told PTI.

"Three bids have been received but Etihad Airways did not submit bids this time around," a bank source told the news agency.

These three EoIs will be examined by resolution professional (RP) Ashish Chhawchharia to verify their eligibility. The RP is appointed by India's bankruptcy court on June 20 this year after it directed insolvency proceeding against the cash-strapped airline.

The final bids are to be submitted by September 12.

The RP last month had invited EoIs to sell the assets of grounded Jet that stopped flying mid-April.

Volcan Investments owns 100% stake in Vedanta Resources which is London based and owns 50.1% in Vedanta India. Volcan also owns 21% of Anglo American which is a globally diversified mining business comprising De Beers, Platinum, Copper and other precious metals, coal, iron ore and nickel

Jet Airways has liabilities over Rs 26,000 crore. These include more than Rs 10,000 crore of vendor dues, Rs 8,500 crore along with interest owed to the lenders, over Rs 3,000 crore in salary dues, and over Rs 13,500 crore in accumulated losses over the past three years.

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