Thursday, March 12, 2020

Jet Airways lenders to seek 90-day extension for resolution process

Mumbai: The committee of creditors (CoC) of Jet Airways on Thursday decided to file for an extension of the airline’s corporate insolvency resolution process (CIRP), given that a plan to revive the company is still not on the table. None of the players in the fray, however, has backed out of the process completely.

An extension of up to 90 days may be sought from the National Company Law Tribunal (NCLT), sources said. It was also discussed in the meeting that perhaps this was not the right time to go for liquidation of the company given weak sentiments prevailing in the economy because of the coronavirus outbreak.

Under the insolvency and bankruptcy code (IBC), the maximum time limit for the completion of CIRP has been set at 330 days, which includes the litigation period. The 270-day CIRP period of the company ends on March 15.

Under the IBC provisions, Jet can get a 60-day extension from the bankruptcy tribunal. However, the NCLT will decide whether it will grant a 90-day extension to Jet, as no resolution plan has been submitted by any of the suitors. The grounded airline did not receive any proposal for revival until the last date of submission of resolution plan expired on March 9.

Sources said the three players — Russia-based Far East Development Fund, New Delhi-based Prudent ARC, and South America-based Synergy Group — are still in the fray, but issues related to slots are big hindrances that are preventing them from presenting a resolution plan.
12/03/20 Subrata Panda/Business Standard
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