NCLT allows extending Jet’s insolvency process by another 90 days

By: |
Published: March 19, 2020 2:10:45 AM

The State Bank of India (SBI) dragged the airline to insolvency court last year, after multiple failed attempts to sell it.

Jet Airways ran out of funds to continue operations in April 2019, and has since been grounded. (File image)Jet Airways ran out of funds to continue operations in April 2019, and has since been grounded. (File image)

The insolvency process for grounded Jet Airways will be extended for another 90 days till mid-June. The National Company Law Tribunal (NCLT) on Wednesday allowed the extension which was sought by the airline’s resolution professional. The 270-day deadline for the insolvency process ended on March 15. FE last week reported that the process had come to a standstill without concrete resolution plans from potential buyers.

At least three parties were understood to be interested in the airline which has now been grounded for a year. Last month, a Russian government-backed fund showed interest in the airline at the eleventh hour. As a result, the committee of creditors (CoC) to the debt-laden airline called for a third round of expressions of interest. The Colombian Synergy Group, which had earlier submitted an informal plan conditional on assurance of the airline’s slots in London and Amsterdam, did not take things forward.

Jet Airways ran out of funds to continue operations in April 2019, and has since been grounded. The State Bank of India (SBI) dragged the airline to insolvency court last year, after multiple failed attempts to sell it. The NCLT admitted Jet Airways for insolvency in June 2019. Parties including the Hinduja Group and Etihad Airways were once understood to be interested in the airline, but did not take things forward. In the absence of promising bids, lenders even initiated the process of monetising some of Jet’s assets by selling its Amsterdam business to Royal Dutch KLM airlines in January.

Jet Airways was India’s second largest airline till 2018, with 13.8% market share. When the airline was grounded in April 2019, around 16,000 permanent employees and over 6,000 employees were left stranded overnight. Shares of Jet Airways closed at Rs 15.50 on Wednesday, down -4.91% on BSE.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1State govt’s permission for migrant labourers’ employment? Here’s where that stands on legal grounds
2Planters seek moratorium on rubber imports
3IBC ordinance: No fresh default case for a year from Mar 25