Jet Airways committee of creditors extends EoI deadline to August 31

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Published: August 27, 2019 2:23:33 AM

Additionally, the CoC rejected the settlement proposal put forth by HDFC regarding the dispute on keeping Godrej BKC out of Jet's resolution proceedings.

The RP sought additional funding to release certain assets stuck in Singapore and other countries. The CoC will vote and decide on the matter by Friday, sources said.

The committee of creditors (CoC) for Jet Airways on Monday decided to extend the timeline for submission of Expression of Interest (EoI) for the resolution of the airline till August 31, sources said. The additional time has been given for the South American Synergy Group, owner of Avianca Airlines.

The resolution professional (RP) has also sought additional interim funding from lenders to recover some assets, including engines, of the airline stuck in Singapore, sources said.

Lenders to Jet Airways met on August 26 to discuss the expression of interest submitted by the Synergy Group. The group had evinced interest in Jet Airways last week, after the deadline for submitting EoIs had already passed.

Apart from the South American group, three entities had showed interest in the grounded airline – a Russian fund Treasury RA creator, Volcan Investments and Panama-based Avantulo Group. Volcan Investments is the family-owned trust of Anil Agarwal, the founder and executive chairman of Vedanta Resources. Of the three, Volcan Investments withdrew its EoI. Etihad Airways, a strategic partner of Jet Airways, also backed out of the resolution process earlier this month stating there remained very significant issues relating to Jet’s liabilities.

The RP sought additional funding to release certain assets stuck in Singapore and other countries. The CoC will vote and decide on the matter by Friday, sources said.

During the first meeting of the CoC, the lenders had approved around `70 crore interim funding for maintenance and other costs. Only a small portion of the approved funding has so far been released. The RP’s legal counsel on Friday told the National Company Law Tribunal that releasing the funds is essential for preserving Jet’s assets. The legal counsel will file an application seeking the NCLT’s directions on the delay.

The CoC has also agreed to the settlement terms set forth by Luckystar, the owner of Siroya Centre, the building where Jet Airways is currently headquartered. Luckystar last month approached the NCLT seeking to repossess the premises after Jet’s lease expired on June 7. If the legal counsel of Luckystar, agree upon the terms set by the RP, it will lead to Jet Airways vacating the premises. The RP asked Luckystar to release certain security payment.

Additionally, the CoC rejected the settlement proposal put forth by HDFC regarding the dispute on keeping Godrej BKC out of Jet’s resolution proceedings. The NCLT will hear both matters on August 28.

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