April update on ongoing business world cases in India. Here is a roundup of April update on ongoing business world cases in India.
- The banks will invite bids for a stake sale in the airline on 6th April which will be completed in a time-bound manner. In the absence of any satisfactory bids, lenders may explore initiating bankruptcy proceedings against the airline.
- The airline temporarily shut down operations after lenders refused to give any interim funding.
- The lenders say that the best way forward for the survival of Jet Airways is to get the binding bids from potential investors.
- Vinay Dube, CEO of Jet has said that the airline does not have an answer at present on the fate of its 20,000-odd employees during the stake sale process.
- Naresh Goyal has said that he has agreed to every term and condition laid down by lenders to ensure timely release of funds for the airline.
- Suresh Prabhu, the Civil Aviation Minister, has ruled out any intervention in the commercial matters of Jet Airways.
More about April update on ongoing business world cases in India:
- SBI has proposed a new plan to revive the airline involving a total fund infusion of Rs.9, 535 crore, and exit Naresh Goyal and Etihad. The plan includes an equity infusion of Rs.3, 800 crore by two unidentified investors and Rs.850 crore equity infusion by state-run lenders led by SBI.
- Jet Airways has informed the stock exchanges that Naresh Goyal has pledged 26.01% stake with PNB.
- The government may allocate 440 vacant Jet Airways vacant slots at Delhi and Mumbai airports to other airlines. The lenders have asked the government to retain 40 percent slots to ensure kick-start of operations by the new owner after taking over.
- Bombay High Court has refused to intervene and said that it cannot direct govt and RBI to rescue a sick company.
- President of Jet Airways union has called for CBI investigation into the matter alleging a conspiracy to oust Naresh Goyal.
- IATA has suspended Jet Airways membership from its clearinghouse system. This may impact the refund process to passengers.
- A group of minority shareholders have sought permission from SBI Capital Markets to present a proposal to lenders to revive the airline.
- BJP leader Subramanian Swamy has written to Suresh Prabhu, the civil aviation minister, asking him to recommend the cabinet to merge Jet Airways with Air India.
- The airline has requested the aviation ministry not to give away its international flying rights to other airlines until the 10th May by when it would know the outcome of the sale process.
- Jet Airways has provided a web interface to travel agents for refund claims which can be submitted until 20 May. Every Monday Jet Airways and credit card companies will validate the claims. Claims for flight ticket refunds will be validated within 45 days.
- Etihad, the only airline to have shown interest in investing in Jet Airways, has also reportedly backed out of the process.
Essar Steel –
- ArcelorMittal has started getting its India team ready to run Essar Steel. They have taken up office space in Mumbai for its India office and have also hired Korn Ferry to identify CXOs for its India team.
- IL&FS case – Serious Fraud Investigation Office has arrested Hari Sankaran, former MD & and vice-chairman of IL&FS.
- Essar Steel is likely to ask ArcelorMittal to deposit the bid amount of ₹42,000 crore for acquiring Essar Steel in separate accounts during the next hearing on 23 April.
Bhushan Steel case –
- CBI carried out searches in various premises of Bhushan Steel in connection with the case of alleged cheating of Rs. 2348 crores.
PNB scam –
- Creditors of Gitanjali Gems have voted to end the resolution process citing time over-run and want to liquidate the firm. The firm owes over ₹12,550 crore to 31 financial creditors in the ₹14,000-crore PNB scam.
- Nirav Modi will appear before a London court for a remand hearing today. He has been behind bars since his arrest last month.
- Jaypee Group has written to home buyers that it would submit a fresh resolution to get back Jaypee Infratech and has sought their support for the withdrawal of the insolvency case.