Friday, August 21, 2020

Jet Airways insolvency process likely to be extended

The resolution plans received from two bidders will be placed before the lenders, and the plan which secures 66 per cent of votes from the lenders committee will be submitted for approval from the National Company Law Tribunal bench, announced the resolution professional in a letter to employees of Jet Airways.
The letter from Ashish Chhawchharia, the resolution professional from Grant Thornton Advisory, came on the eve of the final deadline for the insolvency proceedings before the NLCT. Though his letter did not specifically mention it, it hinted that the insolvency proceedings would be extended as Committee of Creditors (CoC) continued to evaluate the feasibility of two resolution plans received from prospective bidders.
“Once this assessment is complete, the CoC shall vote on the resolution plans, which, in their opinion, would be in the best interest of the Company and all its stakeholders. For any resolution plan to be considered approved, it will need to secure the votes of at least 66 per cent of the CoC members (in value terms),” Chhawchharia said in his letter.
He said after the NCLT bench approves the selected resolution plan, the control of the Jet Airways (India) Ltd will be handed over to the successful bidder as per the resolution plan, and the winning consortium will then be responsible for implementing the approved business and revival plan.
“All the creditors/stakeholders including employees/workmen shall be paid strictly in accordance with the terms and timelines laid down in the approved resolution plan and extant laws in this regard,” the letter said, stating that it is difficult to predict when the corporate insolvency resolution process will be over.
Jet Airways, which stopped commercial operations on April 18, 2019, went into insolvency under the Insolvency and Bankruptcy Code on June 20, 2019 after the petition filed by lead lender State Bank of India was approved by the Mumbai bench of the NCLT.
21/08/20 Satish Nandagaonkar/Mumbai Mirror
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