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Russian government backed fund shows interest in Jet Airways

“They submitted some documents just last week,” said the person in the know who didn’t want to be named. The fund was established in November 2011 by the Bank for Development and Foreign Economic Affairs or VEB bank whose supervisory board is chaired by the country's president Vladimir Putin.

, ET Bureau|
Last Updated: Feb 18, 2020, 08.33 PM IST
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Jet Airways
MUMBAI: Russian government-backed Far East Development Fund has shown an interest in bankrupt carrier Jet Airways, a person in the know said Monday.

“They submitted some documents just last week,” said the person in the know who didn’t want to be named.

The fund was established in November 2011 by the Bank for Development and Foreign Economic Affairs or VEB bank whose supervisory board is chaired by the country's president Vladimir Putin.

It facilitates provides preferential and long term financing of projects in sectors such as infrastructure, production of minerals, short and medium scale companies and agriculture in the Far East and Baikal region.

The total assets of the fund amount to RUB 59,6 billion (Rs 6,675 crore) according to its website.

The Russian Far East is a region in North Asia which includes the Russian part of the Far East, the easternmost territory of Russia, between Lake Baikal in Eastern Siberia and the Pacific Ocean. The Far Eastern Federal District shares land and maritime borders with Mongolia, China, North Korea, Japan and the US.

India has pledged its support Russia in its development of the Far East region. Prime Minister Narendra Modi in September launched the 'Act Far East' policy and announced a $1 billion line of credit for the development of the resource-rich region.

A spokesperson for the fund didn’t respond to emailed questions before the story went to press.

The offer, although preliminary, shows the story of India’s oldest private carrier hasn’t yet ended. Jet, bereft of planes, flying slots and staff is undergoing bankruptcy proceedings at the National Company Law Tribunal (NCLT), dragged there by its debtors led by State Bank of India. It stopped flying in April last year, running out of cash and failing to raise more money.

Last year, Synergy Group, a South American conglomerate that owns majority shares in airlines including Colombian carrier Avianca Holdings, showed an interest in the airline. It submitted a fresh expression of interest in January. An Indian asset reconstruction company Prudent has also shown interest. On Tuesday, Jet’s lenders or committee of creditors examined Prudent’s request for four weeks to submit its resolution plan for the airline. They gave it time till March 9, said the person cited above.

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