Monday, 30th October 2017

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Jet Dutch asset sale

The domestic full-service carrier closed down operations last April

By PTI in New Delhi
  • Published 18.01.20, 12:13 AM
  • Updated 18.01.20, 12:13 AM
  • a min read
A KLM Royal Dutch Airlines aircraft. Shares of Jet Airways were trading 4.92 per cent lower than their previous close on BSE at Rs 45.40 apiece (Shutterstock)

Bankrupt Jet Airways plans to sell its Netherlands business to KLM Royal Dutch Airlines, according to a regulatory filing.

The domestic full-service carrier, which closed down operations last April, is undergoing an insolvency resolution process.

The insolvency resolution professional managing the affairs of Jet Airways said various options were being explored for the “company's resolution and maximising the value for its stakeholders”, as per the filing on Friday.

Providing an update, the company said there is a separate liquidation proceeding ongoing in the Netherlands and that the resolution professional has agreed a co-operation protocol with the Dutch trustee appointed by the local court.

“In this context, the company and Dutch trustee have entered into a conditional sale and purchase agreement with KLM, on January 13, 2020, for the proposed resolution of business activities of the company in the Netherlands as approved by the committee of creditors,” it added.

“The proposed resolution is subject to the completion of several conditions including statutory and regulatory clearances, both under Indian law and Dutch laws,” the filing said.

If completed, the transaction would only involve a sale of part of the Jet Airways business activities and would not impact the shareholding pattern of the company in any manner, it added.

Shares of Jet Airways were trading 4.92 per cent lower than their previous close on BSE at Rs 45.40 apiece.

AI offer

The Centre is likely to issue the expression of interest (EoI) and the share purchase agreement (SPA) for debt-ridden Air India's privatisation within the next three to four days, a senior government official said on Friday.

The official said that “a group of ministers (GoM), headed by Union home minister (Amit Shah), had on January 7 approved the EoI and the SPA for the airline”.

“We will issue these within three to four days,” the government official said.