The Jet Airways India Ltd. headquarters stand in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Keep Jet Airways Headquarters Out Of Resolution Plan, HDFC Tells NCLT 

Mortgage lender Housing Development Finance Corporation Ltd. moved the National Company Law Tribunal seeking to keep the Jet Airways (India) Ltd. headquarters in Mumbai out of the bankruptcy process.

The HDFC counsel told the NCLT that three floors of the building were mortgaged with the lender. The tribunal will hear HDFC’s plea on Friday along with the main petition.

Last month, the NCLT had admitted the insolvency petition filed by the lenders’ consortium led by State Bank of India against Jet Airways which stopped operations on April 17 after running out of cash.

The tribunal has also appointed Ashish Chhauchharia of Grant Thornton as the resolution professional and asked him to submit a progress report by July 5.

The consortium of 26 bankers led by SBI took the grounded Jet Airways to NCLT to recover their dues of over Rs 8,500 crore.

The lenders have been trying to sell the airline as a going concern since the past five months, but failed due to many a reason.

Apart from banks, the airline also owes over Rs 10,000 crore to its hundreds of vendors, primarily aircraft lessors and over Rs 3,000 crore to its employees who have not been paid since March.

The airline has been having negative networth for long and has run a loss of over Rs 13,000 crore in the past few year. Thus it has over Rs 36,500 crore of dues and being a services company negligible assets to recover.

Also read: Employee Consortium, AdiGroup To Bid For 75% Of Jet Airways At NCLT

Bloomberg Quint

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