Etihad Airways, on Monday, said it has declined to submit an expression of interest to acquire the assets of Jet Airways through the insolvency process because of unresolved issues concerning Jet’s liabilities.

The national airline of the United Arab Emirates said that "there remained very significant issues relating to Jet’s previous liabilities."

Etihad had acquired a 24 per cent stake in Jet in 2013, at a time when Jet needed significant financial support.

"Since then, Etihad has consistently and constructively sought and advanced solutions to help resolve Jet’s issues. But as a minority shareholder, Etihad has had limited capacity to secure required changes," the airline said in a statement.

Earlier this year, Etihad presented a conditional expression of interest to reinvest in Jet as a minority stakeholder, with an agreed partner, but unfortunately, this did not materialise.

"Etihad remained engaged in the process, but despite the endeavours of everyone involved there remained very significant issues relating to Jet’s previous liabilities. Regrettably, in these circumstances, it was neither feasible for nor responsible of Etihad to reinvest in Jet at this time," it said.

This decision is unrelated to and does not affect Etihad’s continued commitment to India, the airline’s largest single market, and one which it has served for 15 years," the airline added.

EoI from Volcan Investments

At least three players, including Anil Agarwal’s family trust Volcan Investments, are understood to have expressed interest in acquiring Jet Airways ’ assets through the insolvency resolution process.

Volcan Investment, in an exploratory move, has submitted an expression of interest (EoI) “to understand the business scenario for the company and the industry”.

Read also: Anil Agarwal’s family trust, two other bidders show interest in Jet Airways

The resolution professional (RP) of Jet Airways had set an August 10 deadline for submitting EoIs.

There are two other bidders. One is from an entity registered in Panama, but it is not clear who is behind this company. Another entity, called the Russian Fund Treasury RA Creator, is also understood to have put in a bid. The fund’s India representative, Binay Kumar, could not be reached for comments.

Final bids from the short-listed players are expected to be submitted by September 12, the RP had said in a note to exchanges earlier.

Jet was dragged to NCLT-led insolvency proceedings on June 20 by its lenders after they found no credible bids for the stressed assets. The private carrier is facing claims of ₹24,888 crore from various creditors.

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