New legal and advisory professionals board Jet's insolvency proceedings
As efforts continue to rescue Jet Airways’ financial situation, a new resolution professional (RP) from professional services firm Grant Thornton has been called upon to help with the process, while law firm Cyril Amarchand Mangaldas has been selected to represent the firm legally.
Cyril Amarchand Mangaldas is the largest law firm in India, and is well equipped to manage the Jet Airways project, given some of its recent assignment. In 2017, the law firm was called upon to help with the divestment of Indian public sector airline carrier Air India, alongside EY and Rothschild.
The firm will now help the State Bank of India (SBI) with resolving the situation at Jet Airways, after the creditor made the decision to begin the insolvency process for the airline. SBI has also brought on board Partner at Grant Thornton Ashish Chawchharia as an RP for the insolvency process.
Chawchharia is currently a Partner and the Head of Restructuring Services at Grant Thornton, and has previously been the Practice Head for the Eastern Region. He has a wealth of consulting experience at a number of illustrious firms, including former accounting and advisory firm Arthur Andersen.
The entry of Chawchharia and Cyril Amarchand Mangaldas into the equation is the latest development in a prolonged saga that has unfolded over the last year. Late in 2018, efforts were still being made to rescue operations at Jet Airways, at which point in time McKinsey & Company & Jet Airways were both brought on board.
McKinsey was tasked with helping to cut costs at the airline, while BCG was tasked with working to boost revenues at the giant. Nevertheless, the airline’s finances continued to deteriorate and consulting firm Alvarez & Marsal was involved in the process to conduct due diligence to the firm to inform a possible takeover from Etihad.
SBI, meanwhile, appointed Big Four accounting and advisory firm EY to help the lenders consortium by conducting an audit. SBI has now made the decision to enter insolvency proceedings with Jet, as the creditors meet the potential to recover approximately Rs 8,400 crore.
Commenting on the move, Founder of Jet Airways Naresh Goyal said, “I feel sad and deeply distressed mainly for our loyal employees who have waited months and were anxiously and hopefully awaiting a positive outcome to the Bank Led Resolution Plan.”
