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Last Updated : Jun 20, 2019 07:24 PM IST | Source:

SBI on Jet Airways: NCLT route taken after due diligence

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

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The decision to refer the resolution of Jet Airways under the Insolvency and Bankruptcy Code (IBC) was taken after due diligence by all lenders, State Bank of India (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.

On June 18, SBI filed an insolvency petition under Section 7 of IBC in Mumbai bench of National Company Law Tribunal (NCLT) in Mumbai against debt-ridden Jet Airways on behalf of the consortium of lenders. SBI also proposed Ashish Chhawchharia of Grant Thornton as the Resolution Professional.

The hearing is scheduled for 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 the aviation sector that will be tested," he added.

Cash-strapped Jet Airways was grounded on April 17 and lenders have since failed to reach a resolution or receive formal proposal from any investor for reviving the airline.

Jet Airways owes over Rs 8,000 crore to a consortium of 26 banks led by SBI. It has accumulated losses of approximately Rs 13,000 crore and vendor dues of over Rs 10,000 crore and salary dues of over Rs 3,000 crore.

In a statement, lenders said: "A meeting of lenders was held to consider the way forward in respect of Jet Airways. After due deliberations, lenders have decided to seek resolution under IBC (Insolvency and Bankruptcy Code, 2016) since only a conditional bid was received and requirement of the investor for SEBI exemptions and resolution of all creditors is possible under IBC."

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First Published on Jun 20, 2019 07:22 pm
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