Jet Airways crisis: NCLT admits lenders’ petition for insolvency

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Mumbai | Updated: June 21, 2019 4:34:41 AM

Directs IRP to try and resolve matter within three months.

The tribunal directed the interim resolution professional to try and resolve the matter within three months against a normal timeframe under the law of six months. (PTI Photo)

The National Company Law Tribunal (NCLT) on Thursday admitted the insolvency petition filed by the lenders’ consortium led by State Bank against Jet Airways.

The tribunal directed the interim resolution professional to try and resolve the matter within three months against a normal timeframe under the law of six months.

It further asked the IRP to submit the status report on a fortnightly basis. As such the first status report will have to be filed by July 5, which is the next date of hearing on the matter.

As is known, SBI along with 26 other banks had on Monday decided to take the grounded airline to the NCLT to recover dues, and had filed a petition under Section 7 of the Insolvency and Bankruptcy Code. This was after the lenders failed to get a suitable offer from any of the potential investors.

In its plea, SBI has made a claim of Rs 967 crore and said it had given Rs 505 crore in working capital loans, and an overdraft facility of Rs 462 crore to the company.

However, the tribunal rejected the plea by the Netherlands-based vendors for filing an intervention application, saying the Dutch district court had no jurisdiction to order bankruptcy of Jet Airways.

The representatives of two Dutch logistics vendors wanted the tribunal’s nod to make an intervention petition.

The two logistics vendors of Jet in the Netherlands had confiscated a passenger jet at the Amsterdam airport late March seeking dues and a local court had in May ordered bankruptcy process against the grounded airline and had appointed Rocco Mulder as the administrator for the bankruptcy proceedings.

The tribunal also rejected the bankruptcy pleas filed by two operational creditors of Jet — Shaman Wheels and Gaggar Enterprises. These companies claim Rs 8.74 crore, and Rs 53 lakh, respectively, from the airline, and were the first to take the airline for bankruptcy on June 10.

“Those petitions are rejected as the plea under Section 7 of the IBC has been admitted today. However the petitioners are free to approach the RP,” the tribunal said.

The tribunal appointed Ashish Chhauchharia of Grant Thornton as the resolution professional for airline.

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