Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
11,899.75-68.65
Stock Analysis, IPO, Mutual Funds, Bonds & More

Colombian airline Avianca’s owner shows interest in Jet Airways

Majority shareholder in Colombian carrier Avianca submits EoI after Aug 10 deadline; RP to seek Jet creditors’ nod.

, ET Bureau|
Updated: Aug 26, 2019, 11.07 AM IST
0Comments
MUMBAI: Synergy Group Corp., a South American conglomerate that owns majority shares in airlines including Colombian carrier Avianca Holdings, has shown exploratory interest in investing in Jet Airways, said a person aware of the development.

The conglomerate submitted an expression of interest for the bankrupt and grounded airline after the August 10 deadline set by the resolution professional running the bid process. The RP, Ashish Chhawchharia of Grant Thornton, will seek approval from the committee of Jet’s creditors to include Synergy in the race on Monday, he told ET.

The RP was appointed by India’s bankruptcy court after it admitted an insolvency plea from Jet’s top lender, State Bank of India, on loan repayment defaults. The committee of creditors was also formed as part of the resolution process.

The RP has collated claims from all creditors and is in charge of finding a new investor for the airline to clear its dues and give it a new life. Jet halted operations on April 17 after running out of cash and failing to raise money to keep afloat.

The RP had received three EoIs for Jet as of August 10 – from Volcan Investments, which is billionaire Anil Agarwal’s family trust; Panama-based investment firm Avantulo Group, and Russian Fund Treasury RA Creator.

Volcan withdrew a day later and Avantulo wasn’t shortlisted for the next round of bidding, leaving the Russian fund as the only selected entity.

“We do not have any information regarding the transaction you mentioned not can we make any statements on behalf of any of our shareholders,” an Avianca spokesperson told ET

While Jet’s creditors have put in claims for Rs 30,558 crore, the RP has admitted Rs 12,555 crore, rejected Rs 11,996 crore and is verifying the remaining amount.

The Synergy Group owns majority of Avianca Holdings formed in 2010 via the merger of Colombia’s Avianca and El Salvador’s TACA Airlines. It is Latin America’s second-largest airline, after Chilean carrier LATAM Airlines.

1

Avianca Holdings is loss-making and itself being restructured, including a change in management team, a phaseout of aircraft and network optimisation.

Synergy chairman Germán Efromovich’s holding company, BRW Aviation, defaulted on a $456 million loan from United Airlines earlier this year, according to media reports. United’s loan was backed by Efromovich’s 51.5% stake in Avianca, the reports said. United, which has proposed a three-way business agreement with Avianca and Panama’s Copa Airlines, sought to remove Efromovich from his position of control at Avianca, the reports said.

Also Read

Air India seals codeshare alliance with Air New Zealand, Avianca

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service