Hinduja Group readies formal bid for Jet Airways: Report

Hinduja Group readies formal bid for Jet Airways: Report

Agency News

Hinduja Group might soon prepare a formal bid for debt-ridden Jet Airways, according to a report by Bloomberg.

The Hinduja group Iikely to submit an expression of interest before January 15, the deadline set by the government. The UK-based group, run by brothers Gopichand Hinduja and Ashok Hinduja, plans to submit an expression of interest by the 15 January deadline, signaling its intent to make a formal offer, a report by Livemint says.

Creditors are seeking fresh bids for Jet Airways after earlier getting interest from only a single company, Synergy Group Corp. The Mumbai-based airline, which was once the country’s largest by market value, fell victim to a price war initiated by a slew of budget carriers and eventually defaulted to banks, staff and lessors.

State Bank of India (SBI) and Punjab National Bank (PNB) have claimed ₹8,230 crore ($1.2 billion), while other creditors, like employees and lessors, are seeking ₹6,400 crore from the airline, which is 24% owned by Abu Dhabi’s Etihad Airways PJSC.

Hinduja Group had earlier this year considered bidding for Jet Airways in partnership with Etihad, but Etihad eventually came out of the proposal and Jet Airways was tipped into bankruptcy. At this stage it is unsure that whether Hinduja Group may decide against bidding, or other bidders may emerge.