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Last Updated : Jun 20, 2019 07:48 PM IST | Source: Moneycontrol.com

Jet Airways: NCLT admits SBI's plea, sets 90-day timeline for resolution

NCLT directed the IRP to submit fortnightly progress reports on the case, with the first such report to be submitted before July 5.

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The Mumbai bench of National Company Law Tribunal (NCLT) on June 20  admitted petition filed by the State Bank of India (SBI) for resolution of Jet Airways under the Insolvency code and suggested a timeline of 90 days citing it as a matter of national importance.


On June 18, SBI had filed insolvency petition under Section 7 of IBC in Mumbai bench NCLT and also proposed Ashish Chhawchharia of Grant Thornton as Insolvency Resolution Professional (IRP).


NCLT directed the IRP to submit fortnightly progress reports on the case, with the first such report to be submitted before July 5.


The troubled airline that was grounded two months ago as it ran out of cash, owes over Rs 8,000 crore to a consortium of 26 banks led by SBI.


The decision to refer the resolution of Jet Airways under the Insolvency and Bankruptcy Code (IBC) was taken after due diligence by all lenders, SBI Chairman Rajnish Kumar said. "There are cogent reasons for lenders. Every decision is taken after lot of due diligence,"  Kumar said after attending the bank's annual general meeting on June 20.


Kumar indicated that the possibility of liquidation could not be ascertained at this stage.


"How can I foresee what will happen in NCLT…This is the first case of aviation sector bankruptcy that will be tested," he added.



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First Published on Jun 20, 2019 07:48 pm
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