Monday, June 15, 2020

NCLT allows Jet Airways to sell office in Mumbai's Bandra Kurla Complex

Mumbai: The NCLT has allowed Jet Airways to sell its premises in Bandra Kurla Complex (BKC) to settle Rs 360 crore dues of mortgage lender HDFC, clear overseas debt and cover corporate insolvency resolution process costs.
Jet Airways' insolvency resolution professional Ashish Chhawchharia had moved the NCLT to seek approval to sell its third and fourth floor in Godrej BKC building to clear overseas debt to transfer the title of six aircraft under Export-Import Bank of the US to the corporate debtor, which would help in maximising value of the defunct airline.
The insolvency professional had sought permission of the tribunal for the sale of the premises after a resolution was passed at the 10th committee of creditors (CoC) meeting held on April 24 with approval of 74.45 per cent votes.

The Principal Bench of NCLT in its order on June 11 granted permission to the grounded airline to sell the premises for utilising the proceeds to settle Rs 360 crore dues of HDFC, as against the mortgage lender's claim of Rs 424 crore.

The property is non-core asset of the grounded airlines, which was never used by Jet as part of its airlines business, the order said.

The lenders have kept the reserved price of Rs 490 crore for the property, it added.

Auction for the same is expected to take place on June 26, according to sources.

The order further said that the US Exim Bank holds a charge over six aircraft, of which cumulative depreciated value is over $200 million.
14/06/20 Press Trust of India/Business Standard
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