The National Company Law Tribunal (NCLT) is set to hear the State Bank of India’s application to initiate insolvency proceedings against Jet Airways, along with two similar petitions filed by operational creditors — Shaman Wheels and Gaggar Enterprises on Thursday.
SBI, represented by Cyril Amarchand Mangaldas, has filed a plea under Section 7 of the IBC, that allows financial creditor to file an application against the corporate debtor.
Meanwhile, at the hearing on Wednesday, Kiran Sharma, junior to Sumant Batra who is representing Rocco Mulder, appointed by the North Holland District Court as trustee or ‘administrator in bankruptcy’ of Jet Airways (India) during its bankruptcy hearings, apprised the NCLT of the Netherlands court’s judgment declaring the airline ‘to be in a state of bankruptcy’.
At the hearing on Thursday, Sharma is expected to put the Dutch court’s judgment on record and file an intervention application. In May, the Dutch court declared Jet Airways as bankrupt following a plea submitted by two European operational creditors H Essar Finance Company and Wallenborn Transports with unpaid dues amounting to about Rs 280 crore.
Meanwhile, a representative of the now-defunct airline’s pilots’ union requested that it be made party to the SBI bankruptcy petition and served notice as well. The tribunal is expected to consider the same on Thursday.
The grounded airline owes more than Rs 8,000 crore to the consortium of banks led by SBI, while it has a much larger debt pile by way of accumulated losses, vendor and salary dues.
Jet Airways halted operations on April 17 after lenders rejected its request to provide emergency funding. The civil aviation ministry has allotted a significant portion of the airline’s slots in major airports to other scheduled carriers.
Source: Financial Express, June 20, 2019