Part 2 of "the check's in the mail".
continuing my previous post...
(4) Though we agreed for amounts received by TruJet to be treated as our debt, May and June salaries got paid from VGF credits (under UDAN Scheme) received from MCA. And these credits are not any borrowings from previous management but utilization of internal revenues of Trujet. Interups has drawn around 60 L from the account of TruJet but that was purely drawn towards structuring the transaction to receive money into Trujet and this money was to be paid by TruJet.
(5) Company could not use July credit receipt for Salaries as the amount had to be utilized for ungrounding 2 Aircrafts. Again internal credit used. I am not sure how the journalist carried information that previous management paid the salaries.
This payment to the lessor in preference to salaries was essential as otherwise it would zero the critical udan credit the airline keeps receiving from the center by running operations. With 1 aircraft already in operations, the count is now three and not 2 in flying as the article stated.
(6) The payment delay is because of structural issues and pending security clearance. As explained, we have 50:50 joint participation from another US based firm to invest 1,575 crores into TruJet through Singapore. Expecting delays we requested Trujet previous ownership time until Sep 28 to make payment but luckily we could identify and acquire one Indian Listed Entity that has 100% owned Singapore entity. This will address the Singapore entity requirement for our Joint Partner to invest 50% of the amount we budgeted for the airline in 1st year. This is why I have told her that we will make the payout between Aug 15-31 as we do need to correctly take in the money flows.
(5) Under Confidentiality (the name of the investing firm may not be circulated in press for known reasons), XXXX has agreed to invest $600 Million with us (expandable to $800 Million) as a dollar for dollar match for acquiring assets in tune of $1.6 Billion. I have attached their confirmation to confirm our readiness to invest but in confidentiality requested Hindu not write their name anywhere.
Wrong news publishing, without completely verifying facts, hurts our integrity upon the transaction; raises doubts on the previous promoter group as the journalist quoted that they are scouting for new buyers. It even disturbs our arrangement with the investor as they may turn nervous and develop suspicion on our integrity.
I am at a loss of words.... and quite surprised, how such a highly reputed and clean Hindu can carry this article without fully verifying the facts.
It not just hurts us on TruJet. It hurts our integrity and ethical conduct on all the transactions we are pursuing. What readers will think of us? I always beg to present that I appreciate fair Journalism but I stand tall and clean if we are wrongly presented.
I have presented Attachments to substantiate my writing in truth requesting it be treated in strict confidence.,
Laxmi Prasad
