Thursday, August 22, 2019

Dutch court threatens to sell Jet Airways’ confiscated assets

The administrator of a Netherlands court, which is pursuing insolvency of grounded Jet Airways, on Wednesday threatened to sell off the confiscated assets of the debt-laden carrier because of non-cooperation by the committee of creditors (CoC).
A three-member bench of the National Company Law Appellate Tribunal (NCLAT) headed by Justice SJ Mukhopadhaya has sought the lenders’ response on whether they are ready to pay fees and bear costs incurred by the Dutch court administrator, Rocco Mulder.
The NCLAT said it would consider similar treatment for creditors of foreign countries as financial creditors and could allow cost of insolvency resolution process at overseas location to be borne in India. The tribunal will further hear the case on September 4.
Representing Mulder, advocate Sumant Batra told the National Company Law Appellate Tribunal (NCLAT) that the lenders are yet to decide on their claims.
“I will have to withdraw the undertaking for not disposing of the seized assets since there is no response from the CoC on my demands,” Batra said.

The administrator undertook before the NCLAT on July 11 not to sell Jet’s assets till the pendency of the case. He had challenged the NCLT, Mumbai, decision to not consider the insolvency proceedings currently underway in the European nation.

Staying the NCLT order, the appellate tribunal had said it will clarify law on the course of action when two insolvency proceedings are moved against the same company in different countries.
Jet, which terminated all operations on April 17, is facing insolvency proceedings in the Netherlands as well, where it was declared bankrupt after failing to pay two European creditors with dues of around Rs 280 crore.
22/08/19 Indian Express

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