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Tune in on 17th July for the Small Business Virtual Summit with Cisco. Register now!
Last Updated : Mar 18, 2020 12:31 PM IST | Source: Moneycontrol.com

Jet Airways gets 90 days more for resolution under IBC from NCLT

The previous 270-day deadline for Jet Airways ended on March 15

Jet Airways
Jet Airways

The National Company Law Tribunal (NCLT) has, on March 18, granted grounded airline Jet Airways another 90 days for resolution under the Insolvency and Bankruptcy Code (IBC), CNBC-TV18 reported.

The previous 270-day deadline for Jet Airways ended on March 15. The 90-day extension from the NCLT Mumbai Bench has given the troubled carrier a total of 360 days for resolution. Notably, IBC norms allow for a maximum of 330 days’ time for the process.

On March 12, the Jet Airways' Committee of Creditors (CoC) sought a two-month extension of the deadline for submission of bids from the NCLT.

Close

The CoC, with no potential bidder to come forward, believes it might not get the desired results if it were to go for liquidation of assets at this stage due to the ongoing coronavirus (COVID-19) concerns, sources said.

The cash-strapped airline, grounded in April 2019, owes more than Rs 8,000 crore to banks, with those from the public sector having significant exposure.

On June 20, 2019, The NCLT admitted the insolvency petition filed by the lenders' consortium led by State Bank of India (SBI) against Jet Airways. The tribunal has also appointed Ashish Chhauchharia of Grant Thornton as the resolution professional for the crippled airline.
First Published on Mar 18, 2020 12:31 pm
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