The legal representative of the resolution professional (RP) for Jet Airways on Friday submitted a progress report on the resolution plan of the airline to the National Company Law Tribunal (NCLT). The legal counsel also sought directions from the NCLT asking some lenders of the airline to expedite the release of interim funding for the insolvency proceedings. The tribunal will hear the matter on October 9.
In the first meeting of the Committee of Creditors (CoC) in July, lenders to Jet had sanctioned interim funding of around Rs 70 crore. Of the approved amount, only the State Bank of India has disbursed funds so far. Some lenders are yet to sanction the disbursal, the RP’s legal counsel told the tribunal. “The initial disbursement is almost exhausted. That means that the corporate insolvency resolution process could come to a grinding halt,” the legal representative to the RP told the tribunal.
In the matter of Jet Airways vacating its headquarters in Mumbai, the two-member bench of the tribunal asked the RP’s legal counsel to submit the CoC’s resolution regarding the settlement reached with the owner of the property. The CoC and Luckystar, owner of Siroya Centre, the property where Jet is currently headquartered, have agreed on the terms for the settlement. Jet is expected to vacate the premises in 45 days once the two parties formally come to a settlement on the dues.
The RP’s legal counsel informed the tribunal that the Synergy Group had met lenders and government representatives on the resolution of Jet Airways and the RP is optimistic on the same.
Earlier this week, sources reported that the government assured Synergy Group, the sole suitor for the grounded airline, that returning Jet’s slots after March should not be an issue.
Jet Airways was grounded on April 17 after lenders refused to provide emergency funding. Insolvency proceedings against the airline were initiated on June 20. Creditors have filed claims worth Rs 30,907 crore against the defunct airline so far.
Source: Jet Airways, September 21, 2019