CaliguyNYC wrote:edealinfo wrote:CaliguyNYC wrote:
I agree on timing (but this seems to be IST when it comes to bankruptcy). Why did they not go earlier to the IBC. That said, the tribunal has to try and recover money. It was always silly to just have Jet go away. Even if an airline offered $500M for Jet’s slots and airport infrastructure, the court should take it (and really can’t say no). The GOI left the door open by granting the slots (DOM and INTL) on a temporary basis. Will be interesting how this plays out. Spice or Vistara should go after clean Jet assets. The issue though is Spice probably is still hoping to get things for free (and they still very well might). So do they bid or keep counting on the GOI to deliver things on a silver platter. Oh the dilemma...
The best thing about the IBC process is that EY and NG will probably get nothing and will not have any stake in clean Jet assets. They screwed up and should lose Jet. Now EY can bid on the assets per the rules (assuming there are rules to this process).
The IBC isn’t auctioning Jet’s slots (since it is not an asset of Jet but a Government asset). Even if they were to sell the slots no one would buy them for fear that airlines that got it temporarily will force endless litigation.
All that they can auction or sell are furniture and fixtures, equipment (including the old busses that move people around the airport) etc. there is no real assets to speak off other than the owner aircraft on which there are multiple charges.
Sorry I didn’t mean selling their slots by themselves. I know they can’t do that. If they sell Jet, the company, the slots stay with the company. Technically Jet (the company) still has the slots come the end of October. That is why Vistara was hesitating initially from adding new aircraft. The GOI could take away the slots from Jet (the company) but for some reason has chosen to not take them away even with Jet going into the IBC. Again the news stories are very confusing on what can/will happen in this process. But the reports you have been posting all make it seem that someone could buy a clean Jet. My gut says this will never happen but I am just commenting on the stories people are posting.
Agreed'; If the Resolution Professional (RP) is smart he will market the potential sale with the slots. As it is India, and he is in charge, he can pretty much make up the rules since things aren't really clear and he who leads the way sets the rules to be followed. Who will realistically oppose his decision to maximize the value in a sale of a new Jet? But, such a person would need to have kahunas to lead the way and I am not sure that is the case. Second, I am unclear if he will deliver on a "clean" Jet.
Regardless of what the RP can do, I think the fate of Jet has already been sealed. Ajay Singh ain't going to preside over his company's collapse from getting 40 ex-Jet planes to fill in Jet's void and then having the rug pulled from under his feet. There is too much at stake here. Being close to the Government and toeing the Government line delivers results, as it always has, in Indian business history.