More trouble for Jet Airways: Lenders order second forensic audit

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Published: November 16, 2019 6:04:07 AM

Lenders are likely to accede to the request at the next meeting of the committee of creditors (CoC)on Tuesday. “At this point, the CoC is giving the extension as a hope against hope. Bankers are anyway in a situation of harakiri right now,” the person said.

Jet Airways, forensic audit, Jet Airways news, Jet Airways share, Jet Airways crisis, Jet Airways nse, Jet Airways ownerThe CoC to Jet has once extended the deadline and given Synergy Group time till November 15 to present a resolution plan.

By Shritama Bose & Anwesha Ganguly

The consortium of lenders to Jet Airways has ordered a second forensic audit into the airline’s financials to trace the money trail associated with some of the company’s dealings, sources told FE. “For determining the value of the airline, lenders have been asked for financial statements of some deals made by the company, such as the sale of certain assets and the value of intangibles. Banks do not have all of these details,” one of the people said.

Meanwhile, the Colombian Synergy Group, which was the only party interested in the beleaguered Jet Airways, has not yet put in a bid for the airline. The group, which had been given time till November 15, has sought time till February to evaluate their position, two people aware of the developments said.

Lenders are likely to accede to the request at the next meeting of the committee of creditors (CoC)on Tuesday. “At this point, the CoC is giving the extension as a hope against hope. Bankers are anyway in a situation of harakiri right now,” the person said.

The CoC to Jet has once extended the deadline and given Synergy Group time till November 15 to present a resolution plan. However, the Synergy Group has not found an Indian partner, and is also doubtful about the recovery of slots that were earlier allotted to Jet Airways.
“The Synergy Group is keen on the London Heathrow airport slots that belonged to Jet, and there is no clarity on the fate of those,” the person said.

The airline has been grounded for nearly seven months now, and most of the slots earlier allotted to the Jet have been re-allocated to carriers. Synergy is understood to have assured lenders that they will “take care of” finding an Indian partner to comply with India’s foreign direct investment norms.

“Lenders may give them a little more time. If the extension is granted, liquidation may only get deferred,” another person involved in the process said.

The group, which earlier told lenders it wanted to invest around Rs 3,000-5,000 crore in Jet Airways, is unsure of the viability of the investment, another source said. Earlier this week, the Synergy Group has presented a list of steps it plans to take to rejuvenate the airline, sources said.

FE had earlier also reported that the government had raised concerns about whether the Synergy Group’s investment will meet Indian foreign direct investment norms.

Jet Airways was grounded on April 17 and went into insolvency on June 20. The total claims against the beleaguered Jet Airways stood at Rs 36,090.9 crore as on October 20. Of this, the resolution professional for Jet has admitted claims worth Rs 14,640.32 crore so far, according to the latest data available on the airline’s website.

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