Mumbai: In the year since Jet Airways operated its last flight former employees and creditors have continued to wait for the payment of their dues, even as rivals have swooped in and acquired the airline’s aircraft and routes.
The airline operated its last flight between Amritsar-Mumbai on April 17, 2019, as lenders turned down its demand for emergency funding. The Naresh Goyal-founded airline, among the first private carriers to take to skies in 1993, collapsed under a mountain of debt and a cash crunch.
It has been under insolvency since June last with admitted claims of Rs 16,000 crore. Now, the coronavirus disease (Covid-19) crisis has dashed any prospects of revival.
Before the nationwide lockdown, the National Company Law Tribunal (NCLT) granted an additional three months to the airline’s resolution professional to find a suitor on the grounds that lenders would get better value for their assets if these were sold via a formal resolution plan, instead of the liquidation route.
Till last month, the Russian Development Fund and Prudent ARC were in the fray to revive the airline, but neither submitted a concrete plan.
“In view of the order passed by the NCLT in a suo moto appeal, the period during which there is a lockdown will be excluded while calculating the period of resolution process,” said Ashish Pyasi, associate partner at Dhir and Dhir Associates.
16/04/20 Aneesh Phadnis Subrata Panda/Business Standard
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The airline operated its last flight between Amritsar-Mumbai on April 17, 2019, as lenders turned down its demand for emergency funding. The Naresh Goyal-founded airline, among the first private carriers to take to skies in 1993, collapsed under a mountain of debt and a cash crunch.
It has been under insolvency since June last with admitted claims of Rs 16,000 crore. Now, the coronavirus disease (Covid-19) crisis has dashed any prospects of revival.
Before the nationwide lockdown, the National Company Law Tribunal (NCLT) granted an additional three months to the airline’s resolution professional to find a suitor on the grounds that lenders would get better value for their assets if these were sold via a formal resolution plan, instead of the liquidation route.
Till last month, the Russian Development Fund and Prudent ARC were in the fray to revive the airline, but neither submitted a concrete plan.
“In view of the order passed by the NCLT in a suo moto appeal, the period during which there is a lockdown will be excluded while calculating the period of resolution process,” said Ashish Pyasi, associate partner at Dhir and Dhir Associates.
16/04/20 Aneesh Phadnis Subrata Panda/Business Standard
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