Closing time for Jet Airways? CoC looks at asset liquidation as bidders show no interest

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Published: November 5, 2019 11:02:23 AM

Naresh Goyal-founded Jet Airways may finally be heading towards liquidation as CoC considers selling of the assets.

Jet Airways fallout, Insolvency and Bankruptcy Code, Jet Airways, Etihad Airways, State Bank of India,  IDBI Bank, Jet Airways, Jet Airways crisis, Hindujas, Hinduja group, Etihad Airways, Jet Airways insolvency, Jet Airways news,Jet Airways stock, Jet Airways crisi, Jet Airways share, Jet Airways latest news, naresh goyal, ncltEarlier, the committee of creditors had given the Synergy Group time till November 15 to finalise a resolution plan.

Naresh Goyal-founded Jet Airways may finally be heading towards liquidation as CoC considers selling of the assets. After months of speculations and hopes of revival of the beleaguered airline, no active bidder has emerged yet, and the committee of creditors will discuss next steps for the cash-strapped airline in the upcoming meeting next month, ET Now cited sources as saying. While it was expected that the Synergy Group could finally bring Jet Airways out of its woes, the South American conglomerate also hasn’t made a bid yet, the news channel added. Meanwhile, the Interim Resolution Professional has also started to collate the assets of Jet Airways. 

Earlier, the committee of creditors had given the Synergy Group time till November 15 to finalise a resolution plan. The group had held discussions with the Bird Group for investment into the ailing airline, Financial Express had reported last month. The Bird Group provides aviation management and other services in India and abroad. Meanwhile, one of Jet Airways’ most valuable asset, its slots, might go to other airlines as the Directorate General of Civil Aviation (DGCA) had given the airline time till mid-January to file slot request for the summer season. The slots of the previous season which were allotted to the airline have been re-allocated to other airlines. 

Jet Airways has been grounded for nearly over seven months now after the airline announced a temporary shutdown on 17 April 2019. The airline was struggling to get a cash boost. Jet Airways was finally admitted for insolvency on June 20. The 180-day deadline for completing the corporate insolvency resolution process (CIRP) ends on 16 December. “The corporate debtor company has more than 20,000 employees, and its revival at the earliest by a viable resolution plan is essential,” Jet Airways’ insolvency order stated. Jet Airways owes about Rs 30,907 crore to creditors. However, the RP has admitted claims worth over Rs 14,000 crore.

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