The National Company Law Tribunal (NCLT) on Monday directed the Synergy Group, the sole entity interested in the beleaguered Jet Airways, to appear before it and present a plan by December 3. The direction came after the resolution professional (RP) for Jet Airways, Ashish Chhawchharia, told the bench that Colombia-based Synergy Group sought additional time till February to firm up its plans for Jet Airways. Cash-strapped Jet Airways has been grounded for seven months now and the airline was admitted for insolvency on June 20.
The 180-day deadline for completing the corporate insolvency resolution process (CIRP) will end on December 16. “The tribunal wants to ascertain that the Synergy Group has bona fide intent to participate in the resolution of Jet Airways. So, the bench wants the representatives to appear before the bench, before the next hearing,” one person involved in the resolution process said.
The two-member bench of the Mumbai NCLT also directed that the ministry of civil aviation and Directorate General of Civil Aviation (DGCA) be made parties to the ongoing resolution proceedings and provide clarity on Jet’s slots for the summer schedule.
The Synergy Group, led by Bolivian-born entrepreneur German Efromovich, was the sole entity which showed an interest in the resolution process of Jet Airways. Representatives from the group had in September met the government as well as the lenders and the management of Jet Airways. The return of slots which were earlier allotted to Jet Airways, which have since been re-distributed among other airlines, was one of the key points of discussions during these meetings. Sources last week reported that the group is particularly keen on Jet’s slots in the London Heathrow Airport. The summer schedule runs from last Sunday of March until the last Saturday of October. The DGCA has already firmed up its winter schedule last month.
The committee of creditors (CoC) for Jet Airways, which had already given the Synergy Group time till November 15, will meet on Tuesday to take a call on further extension till mid-December. In the insolvency order of Jet Airways, the tribunal said that revival of the airline was a matter of “national importance”, and directed that the resolution be completed “at the earliest possible time”. The NCLT will next hear the matter on December 3.
Source: Financial Express, November 19, 2019