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Synergy Group seeks more time to submit final bid for Jet Airways

BusinessToday.In     October 10, 2019

Synergy Group Corp has sought more time to complete due diligence and submit its final bid to acquire Jet Airways. The South American conglomerate, which owns majority shares in Colombian carrier Avianca Holdings, has sought time till November 30. The group could not find any Indian partner, reported Financial Express.

The Resolution Professionals (RP) of Jet Airways had asked the interested parties to submit the resolution plan latest by October 14. The RP is likely to submit the final resolution plan before the NCLT on October 28.

The RP's legal counsel informed the NCLT on Wednesday that the South American company had been given access to all the financial details of Jet Airways. The legal counsel added that no resolution plan had been submitted yet. This was the sixth report by Jet Airways' RP to the tribunal.

Additionally, the government, during its meeting with Synergy Group, has reportedly asked it to comply with India's Foreign Direct Investment (FDI) rules.  As per these rules, a foreign airline can only invest up to 49 per cent in a domestic carrier. Synergy Group has, meanwhile, requested the government to relax the FDI norms.

German Efromovich, owner of Synergy Group, bought a bankrupt Avianca in 2004 and since then, the airline has grown to become Latin America's second largest airline. Earlier this year, Efromovich was reportedly removed from the board of Avianca Holdings for a loan breach.

Jet Airways shut down its operations on 17 April due to severe fund crunch. According to the latest update, Jet Airways' liabilities have shot up to Rs 30,558 crore.

Also read: Jet Airways crisis: Disburse lifeline funds in the next 15 days, NCLT tells lenders

Also read: South American, Russian firms shortlisted as final two bidders for Jet Airways: report

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