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Deadline for Jet Airways insolvency process extended again, even as banks evaluate bids

The insolvency process was to be completed by August 21.

August 20, 2020 / 05:12 PM IST
 
 
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Even as banks evaluate the resolution plans submitted by two suitors for Jet Airways, the insolvency process may go beyond the August 21 deadline, going by the update given by the resolution professional Ashish Chhawchharia.

In a statement on August 20, Chhawchharia said the Committee of Creditors, consisting of Jet Airways lenders, are engaging with the two suitors to assess the feasibility and viability of their respective plans for the airline.

"The process has been extended due to the lockdown restrictions in Mumbai," said a senior executive.

The resolution professional in his statement didn't mention till when the process has been extended.

The airline, which had suspended operations in April 2019, had received two bids on July 21. The first consortium was of Flight Simulation Technique Centre Pvt Ltd, Big Charter Pvt Ltd, and Imperial Capital Investments LLC. Both FSTC and Big Charter are led by aviator-turned-entrepreneur Sanjay Mandavia. Imperial Capital is an investment banking and wealth management company based in Dubai.

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The second bid was from the consortium of London-based financial services firm Kalrock Capital and entrepreneur Murari Lal Jalan.

"Once this assessment is complete, the CoC shall vote on the resolution plans... For any plan to be considered approved, it will need to secure the votes of at least 60 percent of the CoC members," the resolution professional said.

The resolution plan will then be presented to the National Company Law Tribunal for approval.

"While the CoC and the RP are taking all necessary steps to expedite the process, it is difficult to exactly credit when it will be complete," Chhawchharia said, adding that the prevailing situation owing to COVID-19 has added to the delay.

Meanwhile, the airline has sold real estate in Mumbai, worth $65 million. It later paid the US Exim Bank to get titles to six Boeing 777 aircraft.
Moneycontrol News
first published: Aug 20, 2020 05:12 pm
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