NCLT has warned Jet CoC of contempt proceedings if it does not release interim funds to the resolution professional by January 20
Jet Airways has bagged its second expression of interest (EoI), the company’s resolution professional (RP) informed the National Company Law Tribunal (NCLT) in its progress report, reports PTI.
The second EoI comes from an unidentified 'high net worth, domestic, non-aviation company', and Jet Airways is expecting 'a few more EoIs' before the January 15 deadline. If these include the Hinduja Group is still unclear, despite reports that the London-based Group was interested.
The grounded airline now has two EoIs ahead of its deadline for submissions of the same, including one from South American Synergy Group, who re-submitted its bid last week.
Synergy Group had emerged as the sole contender for Jet Airways in the previous round of bidding, but it did not submit a binding bid as it sought more time and several clarifications on the slots available for the airline among other things.
Without any binding bid in place, the Jet Airways’ Committee of Creditors (CoC) had earlier decided to invite fresh bids and even extended the deadline to submit EoIs to January 15, sources told Moneycontrol. February 17 was decided the last date of submission of resolution plans.
This will be the last attempt by the lenders to secure a bid for the airline and no further extensions may be granted, a senior banking executive told CNBC-TV18. If no bids were received in this round, liquidation may be considered, the banker said.
Further, the NCLT on January 8 warned Jet’s CoC of contempt proceedings if interim funds to the RP are not released by January 20. The funds are for the completion of the corporate insolvency resolution process (CIRP).
"We again reiterate and instruct the CoC to release the interim amount as required by the RP of the grounded airline, so that the CIRP is completed and the assets of Jet are not devalued," the Mumbai-bench of NCLT, comprising Bhaskara Pantula Mohan and Rajesh Sharma, said.
The tribunal directed the CoC members, who have not honoured the order of the court, to remain present on February 19 -- the next date of hearing.
It also asked Indian Overseas Bank, which is in the process of filing application at the tribunal for exemption from payment as they are under Prompt Corrective Action (PCA) restriction, to approach the government authorities concerned in this regard.
This direction came after the RP pointed out that it is under tremendous pressure as many CoC members, in spite of the tribunal's earlier order, have not released funds.
The lenders had in-principle sanctioned Rs 63 crore to the RP. Lead banker SBI and two other banks had reportedly already disbursed their portion of the interim amount.
Jet Airways is facing loan claims of over Rs 36,000 crore under the Insolvency & Bankruptcy Code (IBC) from various creditors.(With inputs from PTI)Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.