Sunday, June 23, 2019

Resolution Professional meets Jet Airways management, fast tracks process

Mumbai: The insolvency resolution professional appointed by India’s bankruptcy court for Jet Airways has put the grounded airline’s resolution process on fast track, said two people in the know, following the court’s tight deadline.
Ashish Chhawchharia, partner at Grant Thornton, took charge as RP and met the airline’s management on Saturday to apprise them of the plan ahead.
All power of Jet’s board (currently bereft of any member) and signing powers of all authorized signatories of the airline have been suspended. All communications will be under the RP’s signature or someone delegated by him.
Chhawchharia also implemented a complete moratorium of all claims, proceedings, cases and notices to Jet.
No properties or assets of Jet either in custody or with the airline can be attached by any entity. There was an eviction notice from its office in Siroya Towers. That too has been stopped.
The National Company Law Tribunal (NCLT) Thursday admitted an insolvency plea by Jet’s top lender State Bank of India. In their order, the judges halved the deadline for the resolution process to 90 days from the usual 180 days, saying this was a matter of “national importance”. Jet stopped operations on April 17 running out of money to stay afloat. SBI took it to bankruptcy court over defaults on loan repayments after failing to find the airline a new investor through a bidding process.
23/06/19 Aniorban Chowdhury/Maulik Vyas/Economic Times

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