Billionaire Anil Agarwal's family trust, Volcan Investments, has emerged as one of the contenders to acquire stake in debt-ridden Jet Airways, multiple sources aware of the development told CNBC-TV18. Volcan Investments, which holds Vedanta Resources and other subsidiaries, submitted an Expression of Interest to acquire stake in Jet Airways as the deadline ended on Saturday evening, sources said.

Anil Agarwal and his family are the key stakeholders of Volcan Investments. If Volcan does succeed in bidding for Jet Airways, it would mark mining tycoon Anil Agarwal's foray into the aviation sector.

The other two bidders are both foreign funds, sources added. Panama-based investment company, Avantulo Group, and Russian Fund Treasury RA Creator are the two others who have submitted an Expression of Interest for Jet Airways, sources aware of the deal talks told CNBC-TV18.

All three EOIs will be examined by the resolution professional, before final binding bids are invited from the shortlisted players. Final bids from the shortlisted players are expected to be submitted by September 12, the resolution professional said in a note to exchanges earlier.

Etihad Airways declined to lodge an expression of interest to reinvest in India’s Jet Airways because of unresolved issues concerning Jet’s liabilities. An Etihad Airways spokesperson, in a statement to CNBC-TV18 said, "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."

Jet Airways was admitted for insolvency proceedings on June 20 by the Mumbai bench of NCLT, and Grant Thornton's Ashish Chhawchharia has been appointed the Resolution Professional for the airline. Jet Airways is facing claims of Rs 24,887 crores from various creditors.

"Volcan Investment, investment company for Anil Agarwal, in an exploratory move, has sought an EoI for Jet Airways, to understand the business scenario for the company and the industry. This EOI is in no way linked to Vedanta,"the company said in a statement.

First Published:Aug 11, 2019 5:12 PM IST