Tuesday, November 19, 2019

Jet Airways crisis: Synergy gets time till Dec 16 to bid for beleaguered airline

The Committee of creditors (CoC) to Jet Airways on Tuesday broadly agreed to give the Synergy Group, the only entity that evinced an interest in the beleaguered airline, time till December 16 to submit its bid. The proposal was discussed at a CoC meeting on Tuesday, and will be put to vote during the week.
The proposal comes a day after the National Company Law Tribunal (NCLT) asked the Colombia-based group to appear before it and show a bona fide intent to participate in the airline’s resolution by December 3.

The resolution professional (RP) for the airline, Ashish Chhawccharia, would seek additional time from the NCLT of 90 days to present a final resolution plan, sources said. The 180-day deadline for corporate insolvency resolution process (CIRP) ends on December 16. The NCLT had initiated insolvency proceedings against the cash-strapped Jet Airways on June 20, and the airline has now been grounded for over seven months.

In the order, the NCLT had said the resolution should be done expeditiously given it was a matter of “national importance”. “The lenders gave an extension because few options remain otherwise. But the Synergy Group doesn’t have a concrete plan in place, hence the NCLT judges want to meet their representatives,” one person involved in the process said.

If the Synergy Group does not submit its bid by December 16, the process will move towards liquidation, another senior official involved in the process said. “No one wants to say the L word, but if there isn’t a plan in place by December 16, we will have to move towards liquidation,” the source said.
19/11/19 Anwesha Ganguly/Financial Express
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