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I don't know that I'd necessarily agree with your first sentence.Jet clearly, with or without EY's help, is in financial dire straits. EY has already sunk a considerable bag of cash into their 25% investment. What are the alternatives?
1 - see Jet declare bankruptcy (and your investment disappear or evaporate)?
2 - secure a higher share (ie. 33%) of Jet, so that you have hope of preservation in a rescue / restructure?
3 - secure an even higher share (up to 49%) and become the, or a, dominant shareholder - ensuring a prominent role and voice in a bankruptcy / restructuring process? Whilst it may be true that EY is hurting right now, I'd doubt that the 'do nothing' option 1 would be their first choice. The ability to sell their existing interest (despite previous rumours) is now sunk given that the ravens are circling. 'Fire-sale' pricing off-loads - if you can even find someone to sell to - are rarely accreditive.
Some interesting developments:
It is reported that the BoI (Bank Of India) has issued an Expression of Interest over Jet Airways, which is due to close on April 10. They don't waste time. N Goyal (Chairman and primary owner) has been forced off the Board, as condition of on-going bank (loan) support, which apparently has now been withdrawn, after Goyal's exit.
Given that elections are due within the next few weeks, the ruling Govt of India won't be keen on these developments and seeing the privately-owned airline fail. However, the primary bank lenders have already been to the Supreme Court, despite the Indian Government directing them to continue to loan. This state of affairs is likely to become very messy, especially considering the April 10 expiration of the EOI. It could drag on for months and probably will. Another 'Kingfisher' echo? Oh, and EY's top partner negotiator (an ex Jet Airways employee) has shown up. Place your bets or grab your popcorn.
It is a true shame to see what has befallen one of India's previously best carriers.
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Etihad is back onto buying Jet again
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