Synergy Group Corp, which owns a majority stake in Avianca Airlines, the second-largest airline in Latin America, is planning to pick up a 49 percent stake in Jet Airways.
However, Synergy‘s offer comes with a certain terms and conditions. It is willing to take a majority stake in the grounded airline if lenders agree to take a 60-80% haircut and convert their debt into equity, a representative of the South American company said.
Antonio Guizzetti, legal adviser to Synergy Group has said,
We are consulting lawyers and exploring (whether) Synergy Aerospace as a financial investor can take a majority stake in Jet Airways
Since April 2019, Jet Airways has suspended all its operations after facing a severe cash crunch. Since then, its creditors have been trying to sell the non-functional airline. In order to recover its dues worth Rs 8,500 crore, a consortium of 26 banks approached the National Company Law Tribunal route (NCLT).
Synergy has joined a list of suitors for Jet Airways. Here are the names of a few.
1. Jet’s main investor Etihad Airways, along with the Hinduja Group, was in July touted as a possible contender.
2. Etihad Airways, National Investment and Infrastructure Fund Ltd (NIIF) and private equity firms TPG Capital and Indigo Partners had also submitted their Expressions of Interest (EoIs) in April this year, bidding for a stake in the grounded carrier.
3. James Unsworth, a former British Airline service agent, who claimed to have founded a startup, Atmosphere Intercontinental.
4. Ajay Harinath Singh, a resident of Mumbai and the chairman of city-based Darwin Platform Group, a company that allegedly runs businesses in information technology (IT), pharmaceuticals, power, and shipping, among other sectors.
5. Florida-based college professor Sankaran Raghunathan, who claims to represent the airline’s minority investors and frequent flyers.
6. Jet Airways‘ Employees Consortium and London-based private equity firm AdiGro Partners had also evinced interest to make a bid for a 75 percent stake in the airline via the NCLT.
7. Synergy Corp. submitted its bid only after the August 10 deadline.
