Saturday, June 13, 2020

Jet Airways lenders put the defunct airline’s BKC office on the block

Mumbai: The dedicated bankruptcy court has allowed lenders of defunct carrier Jet Airways to sell its office assets located in BKC, a prime commercial suburb of Mumbai. On June 11, the Principal Bench of the National Company Law Tribunal (NCLT) allowed the lenders to go ahead with the monetization plan for about 1.70 lakh square feet saleable area that comprises of 3rd and 4th floor of building ‘Jet Airways Godrej BKC’.
 The asset also includes rights to use parking space for about 140 cars. The lenders have kept the reserved price of Rs 490 crore for the property and the auction for the same is expected to take place on June 26.
 “The proceeds from the proposed sale of premises will be utilized for the clearing residual dues remained payable to one Export-Import Bank of the United States over the finance lease created on six aircraft of corporate debtor (Jet Airways) and to HDFC over the security interest created in favour of it,” said the six-page order. According to the order, US Exim holds a charge over six aircraft of which cumulative depreciated value is over $200 million.
“If the amount payable to US Exim is not paid, US Exim will become entitled to repossess the six aircraft,” said the order further adding that the US Exim bank has agreed that upon the payment of $13 million (about Rs 90 crore), it will transfer the title of six aircraft to the corporate debtor.” With this development, Jet Airways can add six aircraft in its fleet worth around Rs 1,400 crore, which will help its prospects for better bidders, people aware of the development said.
 13/06/20 Maulik Vyas/Economic Times
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