End of days? Jet Airways to vacate headquarters in 45 days

By: |
Updated: August 29, 2019 7:15:41 AM

Luckystar had moved the tribunal in last month seeking to remove the airline’s headquarters from the disputed premises as Jet’s lease had expired on June 7.

Jet Airways, Jet Airways headquarters,Siroya Centre, NCLT, Avianca Airlines, NCLT MumbaiThe RP also sought more time from the tribunal to present a final list of resolution applicants for the airline.

Jet Airways will vacate Siroya Centre, the premises where it is currently headquartered in Mumbai, in the next 45 days. The legal counsels of the resolution professional (RP) for the defunct airline and Luckystar, the owner of the property, informed the National Company Law Tribunal (NCLT) that the parties are very close to reaching a settlement on the matter. The RP also sought more time from the tribunal to present a final list of resolution applicants for the airline.

Luckystar had moved the tribunal in last month seeking to remove the airline’s headquarters from the disputed premises as Jet’s lease had expired on June 7. The committee of creditors (CoC), in its meeting earlier this week, has broadly agreed to the settlement terms put forth by Luckystar.

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The RP informed the tribunal that the deadline has been extended for submission of expressions of interest for Jet Airways, adding that two parties so far have been provisionally short listed as eligible resolution applicants. Earlier this week, the CoC decided to extend the EoI submission deadline to August 31 to allow some time to South American Synergy Group, the owner of Avianca Airlines.

The Synergy Group had evinced interest in the airline last week, after the initial deadline to submit EoIs had already passed on August 10. Russian fund Treasury RA Creator is the other entity that has been provisionally shortlisted.
The Synergy Group has been in ongoing discussions with the RP regarding the defunct airline. The RP also sought additional time from the court to present the final list of eligible resolution applicants. The RP will now submit the next progress report on the resolution of Jet Airways on September 20.

A two-member bench at NCLT Mumbai admitted Jet Airways for insolvency on June 20. While passing the oral order, Judge VP Singh called the resolution of the airline a matter of “national importance” and urged the RP to complete the process within 90 days. The airline was grounded on April 17 after lenders refused to provide emergency funding to continue operations. Slots belonging to Jet Airways have since been allotted to other airlines.

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