InterGlobe Enterprise (IGE) has signed an agreement to participate in the sale process of Virgin Australia (VA), the Company confirmed on Friday. IGE is an Indian conglomerate which has interests in aviation (IndiGo), hospitality and other ventures.
In a statement confirming participation, IGE also said that it is bound by the confidentiality requirements of the agreement and is unable to say anything further at this stage. VA went into liquidation with debt of over $5 billion in April this year. Sources indicate that InterGlobe Aviation, which manages IndiGo, is not part of the Expression of Interest (EoI) by IGE. Rahul Bhatia, is one of the co-promoters of IndiGo and is also the owner of IGE.
The last day for submitting an EoI for VA is Friday and the shortlisted parties are expected to be finalised by June.
The move of IndiGo’s majority promoter looking to pump in funds into another airline as the promoter being bullish on the prospects of aviation. A section of employees is viewing this move as the jobs of the current IndiGo employees being safe.