Monday, August 17, 2020

Jet Airways sells property, acquires aircraft title in insolvency

AZB & Partners and De Brauw Blackstone Westbroek advised the resolution professional managing the insolvency of Jet Airways when the airline sold two floors of a Mumbai building to a company controlled by Brookfield Asset Management. Khaitan & Co advised Brookfield.

The National Company Law Tribunal (NCLT) had given the go-ahead for the ₹4.9 billion (US$65 million) sale after both HDFC, to which Jet Airways had mortgaged the premises, and the committee of creditors of Jet Airways had approved it. Wadia Ghandy advised HDFC, and Cyril Amarchand Mangaldas advised the committee of creditors.

Jet Airways then made a US$13 million bullet payment to the US Exim Bank to acquire title to six Boeing 777 aircraft. Vedder Price advised the bank.

The real estate sale was completed on 10 July, and the acquisition of title to the aircraft, which the company said would add about US$200 million to the value of its assets, was completed on 27 July.

AZB & Partners said this was the first transaction under the Insolvency and Bankruptcy Code (IBC) where a material asset was sold during the IBC process outside the normal course of business, with the approval of the NCLT.
17/08/20 India Business Law Journal
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