Jet Airways’ creditors pass all resolutions

By: |
Mumbai | Updated: August 7, 2019 7:11:45 AM

On June 20, the NCLT initiated insolvency proceedings against the airline, following an application moved by the State Bank of India.

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The committee of creditors (CoC) of Jet Airways on Tuesday passed all resolutions, including the evaluation matrix for assessment of resolution applicants and request for resolution plan, the resolution professional (RP) of the airline said in an exchange filing.

The evaluation matrix has an array of parameters which will help the CoC decide the ideal resolution applicant. So far, the RP has received at least two expressions of interest on August 3, which was the initial deadline for submitting EoIs.

FE earlier reported that the EoI submission deadline had been extended till August 10 to give more time to Etihad Airways.

The RP held the second meeting of the CoC on August 1 to vote on the evaluation matrix and request-for-proposal for resolution plans for the defunct airline. The CoC had also discussed interim funding to pay salary dues of Jet Airways employees. However, banks were reluctant to consider the same.

Last month, the National Company Law Tribunal (NCLT) directed the resolution professional of Jet Airways to discuss concerns over payment of salaries with the CoC, citing necessity of ensuring payment for ‘survival of employees’.

On June 20, the NCLT initiated insolvency proceedings against the airline, following an application moved by the State Bank of India. In its order, the NCLT sought a speedy resolution for Jet Airways as it was considered a matter of “national importance.” While passing the order, Judge VP Singh urged that the resolution process should be completed within 90 days.

Jet Airways halted operations on April 17 after lenders refused to provide emergency funding. Since then, the ministry of civil aviation has re-allocated the Jet’s slots to other airlines on a temporary basis till October.

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