NCLT allows 90-day extension for Jet Airways resolution process

The National Company Law Tribunal (NCLT) on Friday allowed Ashish Chhawchharia, resolution professional for Jet Airways, to extend the corporate insolvency resolution process (CIRP) of the grounded airline by 90 days. Earlier this month, the RP had sought an extension for the resolution period after the Colombian Synergy Group failed to submit a business plan for the revival of Jet Airways by December 16.

Jet Airways was admitted for insolvency on June 20, after lenders failed to sell the grounded airline. The 180-day deadline as stipulated under the Insolvency and Bankruptcy Act, 2016, for the resolution of Jet Airways ended on December 16. Meanwhile, earlier this week, two parties besides Synergy Group expressed initial interest in Jet Airways. FE reported that lenders had in-principle agreed to call for fresh bids for the beleaguered airline. The final decision will be taken by Saturday. On Thursday, the two-member bench of the Mumbai NCLT had asked the committee of creditors (CoC) to decide within three weeks on calling for fresh expressions-of-interest for Jet Airways.

On Thursday, the NCLT met Synergy Group Corp chief operating officer Michael Welch and told representatives of the Synergy Group to “take a decision early” on Jet Airways. Welch told the tribunal that the Synergy Group had put forth conditions including assurance on slots in India, London Heathrow Airport and the Schiphol Airport in Amsterdam. Welch met lenders and officials of Jet Airways on Thursday and will also be meeting government officials over the next few days.

Jet Airways was grounded eight months ago on April 17 after lenders refused to provide emergency funding to continue operations. Creditors have filed claims worth over `36,000 crore with the airline, of which the RP has admitted claims worth over Rs 14,600 crore as of October 20.

Source: Financial Express