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Russia’s Far East Development Fund expresses interest in Jet Airways

Russian government-backed Far East Development Fund has shown a preliminary interest in buying bankrupt Indian Carrier Jet Airways, a person in the know has said. “They submitted some documents just last week,” said the person who didn’t want to be named. The fund was established in November 2011 by Bank for Development and Foreign Economic Affairs, or Vnesheconombank (VEB), whose supervisory board is chaired by Russian President Vladimir Putin.

Bereft of planes, flying slots and staff, India’s oldest private carrier is currently undergoing bankruptcy proceedings at the National Company Law Tribunal (NCLT) after being dragged there by its debtors led by State Bank of India.

Jet had stopped flying in April last year after running out of cash and failing to raise more money. Indian asset reconstruction company Prudent, too, had shown interest in the airline. On Tuesday, Jet’s committee of creditors examined Prudent’s request for four weeks to submit its resolution plan for the airline and gave it time till March 9, said the person cited earlier.

Last year, South American Conglomerate Synergy Group, which owns majority shares in some airlines including Colombian carrier Avianca Holdings, had shown an interest in the airline. It submitted a fresh expression of interest in January. Far East Development Fund has total assets of Russian rouble 59.6 billion, or about. `6,675 crore, according to its website. India has pledged its support Russia in its development of the region.

SOURCE: ECONOMIC TIMES