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Last Updated : Aug 22, 2019 10:44 AM IST | Source: Moneycontrol.com

Jet Airways' insolvency saga: Final list of prospective applicants delayed

The list was to be issued on August 21. It may be delayed by two days.

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The final list of prospective resolution applicants in the Jet Airways' insolvency process has been delayed. The list was to be issued on August 21.

While sources said the two bidders -- RA Creator and Avantulo Group -- have been asked to furnish additional information, the delay has added to the apprehension about Jet Airways' revival.

The two bidders are an unknown entity in the aviation business. Anil Agarwal's Volcan Investments had backed out of the process, just a day after submitting its expression of interest (EoI).

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Meanwhile, resolution professional Ashish Chhawchharia has received further claims from creditors -- both financial and operations creditors. The claims now amount to Rs 30,588 crore, of which Rs 12,500 crore have been admitted.

The first list of claims amounted to Rs 24,887 crore, but only a third of it was admitted.

The admitted claim may further increase as Chhawchharia is still verifying claims worth over Rs 6,000 crore.

But with the insolvency process attracting few suitors, industry observers doubt how much money the creditors can recover.

"The government's extension of the temporary allocation of Jet Airways' slots and flying rights, which were distributed among its peers, is an indication where the insolvency is headed. It is probably headed for liquidation," said a senior industry executive.

The government had last week extended the allocation till December. The allocation was earlier valid till September.

The schedule

As per the schedule, which was earlier shared by the resolution professional, the final list of prospective bidders was to be disclosed on August 21.

Following this, the bidders had to submit their resolution plans by September 12. And the selected resolution plan was to be submitted to the National Company Law Tribunal (NCLT) by September 27.

But now with the delay, the dates could be extended.

The delay, executives had pointed out, would reduce revival chances of Jet Airways, which had suspended operations in April due to acute shortage of funds.

In what could further stretch the insolvency process, administrator of a court in the Netherlands has threatened to sell Jet Airways' aircraft parked in Schiphol airport, if the lenders don't cooperate.

Two creditors have approached the Netherlands court with claims of nearly Rs 300 crore against Jet Airways. Following this, the aircraft in Schiphol had been seized.

Interestingly, the National company Law Appellate Tribunal (NCLAT) on August 21 asked lenders whether they would cooperate with the Dutch court administrator.

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First Published on Aug 22, 2019 10:43 am
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