US company, London firm backing Naresh Goyal’s bid to reboard Jet Airways


A Delaware entity, Future Trend Capital, is understood to be backing the offer by Naresh Goyal’s Jetair to invest in Jet Airways, the distressed airline that is facing a severe cash crunch, employee anger over delayed salaries and grounded planes.

Jetair is the general sales agency (GSA) that birthed Jet Airways.

On Friday, the bid from the Future Trend-Jetair consortium came in at 6:08 pm, eight minutes after the deadline for submitting expressions of interest (EoIs). Jet’s lenders may weigh this factor, among others, while selecting investors for the airline that is desperately seeking fresh capital.

The Jetair spokesman had not responded till press time to ET’s emailed queries on Goyal’s connection with Future Trend and the delay in submitting the EoI.

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While not much is known about Future Trend, it is believed to have pockets deep enough to propose an interest in bidding for Jet.

Sources said Adi Partners, a London-based firm, is also associated with the consortium of Jetair and Future Trend.

NOTHING STOPS GOYAL AND ASSOCIATES FROM BIDDING
According to the conditions in the bidding document, an investor needs to have a net worth of Rs 1,000 crore and allotted funds of Rs 1,000 crore more to invest in Jet.

“Technically, there is nothing that stops Goyal and his associates from bidding. The forensic report has so far not gone against him. Also, Jet Airways is not a case under the Insolvency and Bankruptcy Code that bars existing promoters from re-entering. But after being almost nudged out from the board and management, it’s a call the bankers would have to take,” said a banker.

Founded in 1974, Jetair was Goyal’s powerful GSA that represented as many as 17 global airlines before it spawned Jet Airways in the 1990s. Its current interests, according to its website, include Jetair Tours and Jetfleet — a car rental service. Jetfleet, on its website, describes Jetair as an aviation services group that includes Jet Airways as an affiliate.

MULTIPLE INVESTORS AN OPTION
According to another banker, one of the options to salvage Jet Airways would be to bring in multiple, unconnected investors. “Investments by Etihad Airways, National Investment and Infrastructure Fund, and a private equity fund like TPG Capital or Indigo Partners — with each holding 24% or less in the expanded equity pool — could be a way to avoid an open offer. Etihad, for instance, does not want to raise its stake beyond 24%,” said the person.

Etihad has said it does not want its shareholding in Jet Airways to touch 25% as that would necessitate an open offer for another 20%. Also, it cannot exceed the threshold of 49%, which is the upper limit for a foreign airline’s investment in an Indian carrier. TPG Capital and Indigo Partners were among the companies that submitted EoIs. Etihad, UAE’s second-largest airline, currently owns 24% in Jet Airways.

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