Cayman Company to acquire Gopinath’s Deccan 360

Cargo, Default — By on March 20, 2012 at 1:05 pm

A Cayman Islands-domiciled private equity fund has offered a package deal which could result in it acquiring Deccan 360, the ailing air cargo operator founded by lowcost aviation pioneer G R Gopinath, a person directly involved in the negotiations said. Redclays Capital has offered to help raise $50 million (Rs. 250 crore) for Gopinath’s aviation services company Deccan Charters and buy Deccan 360 for between $2 million and $5 million, the person who don’t want to be identified said. If the transaction is finalised, it will mean that Gopinath and Mukesh Ambani-controlled Reliance Industries, the main shareholders in the moribund freight and logistics company, will have to cede Cyman Company to acquire Gopinath’s Deccan 360 ownership in what will essentially be a fire sale. Reliance, which paid about 110 crore in April 2010 for a 26% stake in Deccan 360, declined to comment for this story, as did Redclays Managing Director Srini Chakwal. Deccan 360, w h i c h w a s started in 2009, has been in a limbo for nearly a year. Three Airbus A-310 aircraft leased from Mauritiusbased Veling h a v e b e e n returned to the lessors; nearly 600 employees were asked to look for jobs and two ATR aircraft have been grounded a s t h e company has n o t b e e n accepting new orders.

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