Jet Airways on Saturday said one of its wide-body Boeing 777 aircraft, which was under the custody of the Dutch Administrator due to the insolvency proceedings against the company in the Netherlands, has been sold, and the proceedings will mainly be utilised to close the process.
Jet Airways is facing insolvency proceedings in the Netherlands in response to a complaint, where it was declared bankrupt in response to a complaint by two European creditors.
"This is now to inform that as per the information received from the Dutch Administrator, the equipment (the aircraft) under the custody of the Dutch Administrator has been sold to IAGCAS 777, LLC, for USD 9-million under the Dutch Insolvency Process," Jet Airways Monitoring Committee-authorised representative, Ashish Chhawchharia, said in the company's regulatory filing.
Jet Airways said in the filing that the sale of equipment is as per the terms of the protocol, whereunder it is agreed that the proceeds from the sale of equipment will be first utilised for the closure of Dutch Insolvency Process in Netherland, to ensure that the company is no more declared insolvent.
Balance funds, if any, shall be repatriated to India which shall be dealt as per the provision of the Insolvency and Bankruptcy Code, the filing added.
Jet Airways was declared bankrupt in Netherlands and thereafter as per the Noord-Holland District Court order dated May 21, 2019, the insolvency proceedings were initiated against the company appointing Rocco Mulder (Dutch Administrator) as the administrator (trustee to manage the estate of the company in Netherlands), it said.
The Dutch Administrator took custody of the assets of Jet Airways in the Netherlands on the date of initiation of such insolvency proceedings which included one Boeing 777 300 ER aircraft (VT-JEW) parked at Schiphol Airport, the company said.
Further, as per the direction of the National Company Law Appellate Tribunal, Cross Border Insolvency Protocol was agreed between Ashish Chhawchharia (erstwhile resolution professional of Jet Airways) and Mulder, which was approved by NCLAT through its September 26, 2019, order, Jet Airways said.
"We wish to further inform that subsequent to the sale of the equipment and after completing the requisite formalities, the Dutch Insolvency Process shall stand concluded," Jet Airways said in the filing.
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