edealinfo wrote:bennett123 wrote:
All this is moot. An airline backed by Etihad, NIIF, Mudabla (Abu Dhabi sovereign fund) and the Hindujas could hypothetically take off. However, right now, there are 2 sticky points with the Hindujas signing on to the consortium (the consortium will be non existent if the Hindujas are not-in, so they are the key party at this point in time).
1. The Hindujas want banks to take a big haircut (80% to 90%) which Indian banks can't swallow because the media and public will project it as crony capitalism. [It is not logical because the alternative is that the bank gets close to 0% if Jet is dragged through the formal bankruptcy process, which could drag on for years -- by then the public anger would have subsided and Jet would have long been forgotten so you can see why the banks prefer that approach]
2. The numerous investigations initiated against Jet after it went belly up is intended to serve a message to potential buyers that a) they would be buying into a snake pit and b) they might end up in the snake pit .
Whether Hindujas step in or bail out will be known by May 10 at the very latest. So, we have about a week to go before we know one way or the other.
Are these based on any facts? OR more of your speculations.
WRT (2) - So you don't want to rule of law followed in the case where it harms any resurrection of Jet?