The Jet Airways lenders consortium, which has opted for a resolution of the grounded airline under the Insolvency and Bankruptcy Code (IBC) is moving fast and has selected Ashish Chhawchharia of advisory firm Grant Thornton for the crucial role of interim resolution professional in the high profile case, multiple sources with knowledge of the matter told Moneycontrol.
Chhawchharia leads the restructuring practice for Grant Thornton in India. Law firm Cyril Amarchand Mangaldas are the legal advisors to the SBI-led consortium for the IBC proceedings, sources added.
The interim resolution professional is a key component of the corporate insolvency process who has to manage the affairs of the stressed company, facilitate the bidding process and balance the interests of all stakeholders.
"This is a very important insolvency case and all eyes are on this process after a stake sale attempt which failed after extensive negotiations with multiple suitors. The interim resolution professional will have to find a solution which keeps the interests of lenders, employees and customers in mind," one of the sources said.
Under the norms, the interim resolution professional has 270 days to find a suitable resolution for the stressed account, failing which the last option of liquidation will be relied upon. "The plan is to find a resolution for the Jet Airways account as soon as possible under the IBC within 45-60 days and not wait till the end of the scheduled timeframe," added a second source.
On June 17, lenders of the beleaguered airline released the following statement, "A meeting of lenders was held today to consider the way forward in respect of Jet Airways. After due deliberations, Lenders have decided to seek resolution under IBC since only a conditional bid was received and requirement of the Investor for SEBI exemptions and resolution of all creditors is possible under IBC. Lenders led by State Bank of India have been taking efforts to find a resolution for Jet Airways outside IBC but in view of the above, lenders have decided to seek a resolution within the IBC process."
The airline stopped operations on April 17, 2019 burdened with outstanding loans of Rs 8,500 crore and liabilities worth Rs 25,000 crore. In the past few weeks, lenders have held talks with potential investors like Etihad and the Hinduja Group to revive the airline, but there was no formal proposal.
The National Company Law Tribunal (NCLT) is scheduled to hear insolvency petitions filed by the airline's operational creditors Shaman Wheels Pvt Ltd and Gaggar Enterprises Pvt Ltd for recovery of dues on June 20. Grant Thornton and Cyril Amarchand Mangaldas were unavailable for comment, this article will be updated as soon as a response is received.
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