The National Company Law Tribunal (NCLT) on Friday approved extension of Jet Airways insolvency resolution period by 90 days. The Committee of Creditors (CoC) sought extension of corporate insolvency resolution process (CIRP) of Jet Airways from the Mumbai bench of the NCLT in view of South America’s Synergy Group wanting more time for due diligence and two new interests being shown for the grounded airline.
The tribunal, comprising Bhaskara Pantula Mohan and Rajesh Sharma, gave their approval for the extension of time as the 180 days deadline for CIRP period of the grounded airline had ended on December 16. On Thursday, Synergy Group Jet Airways’ sole potential bidder had sought more time to take a decision on investing in the grounded airline.
After being asked to expedite their decision, the representative of the Synergy Group had said the company wants to comply with the tribunal’s directions, but it also has to ensure that it takes the right decision on behalf of its stakeholders. “We understand the urgency of the matter. However, we will require a little bit more time to arrive at the conclusion that this is the right decision on behalf of the stakeholders,” he added. He said the company sees a good opportunity in Jet Airways, given some issues are resolved.
“Some of the criteria that needs to be resolved are that we are looking to float a new company free of all legacy liabilities of the erstwhile Jet Airways. We may want to look at partnering with an Indian partner. We also expect clarity on getting back Jet’s airport slots, especially the domestic slots and seek further clarity on Heathrow, London, slots,” the Synergy Group representative told the tribunal.
The NCLT on Thursday had also directed the CoC of Jet Airways to expedite their decision on seeking fresh expression of interest (EoIs) in view of new interest being shown for the grounded airline. “We direct the committee of creditors to take a decision to float EoIs. We direct them to expedite the process,” the tribunal said.
The resolution professional (RP), Ashish Chawcharia, requested three weeks time to float the EoI. The RP on December 17 had told the tribunal that until now two investors have shown interest in the airline. After Jet Airways went bust in mid-April, the government temporarily allotted the hundreds of airport slots owned by it to other carriers, with an aim to contain soaring airfares in the peak holiday season.
Source: Financial Express, December 20, 2019