Monday, March 09, 2020

Grounded Jet Air gets no suitors as deadline for bid submission expires

Jet Airways will not fly again as none of the three suitors, which had expressed interest in the grounded Jet Airways, submitted a resolution plan. The deadline for bid submission closed on Monday.
Jet grounded its operations in April last year and is undergoing bankruptcy proceedings at the National Company Law Tribunal (NCLT), Mumbai. It was dragged there by its debtors led by State Bank of India over unpaid dues.
Advisory firm Grant Thornton India’s Ashish Chhawchharia was appointed as the Resolution Professional (RP) by Jet’s lenders.
A consortium of the Russian government-backed Far East Development Fund, in partnership with Enso Group, Prudent ARC and Synergy Group had submitted their Expression of Interest (EoI) with the resolution professional last month for the third time.
While the resolution professional remained unavailable to comment, a person in the know said that no resolution plan was received before the deadline.
“The Committee of Creditors (CoC) are not keen of liquidating the airline’s assets as there are not much left anyway. The CoC will meet during the course of the week to decide the way forward for the airline,” the source said.
After the 180-day period had ended, it was given an extension of up to 270 days which will be over on March 15. The next hearing of the insolvency proceedings is on March 18.
According to the recent most creditors’ document on the airline’s website, claims worth over ₹36,090 crore against Jet Airways have been received so far, of which the RP has so far admitted claims worth around ₹14,640 crore.
SBI is the lead lender to the debt-strapped Jet.
09/03/20 Florum Gandhi/Business Line

To Read the News in full at Source, Click the Headline


Post a Comment