The Jet Airways bankruptcy case was admitted to the NCLT after banks led by SBI couldn’t find a buyer for the airline. The Etihad-Hinduja offer was unacceptable to them. (Photographer: Jonathan Drake/Bloomberg News)

Jet Airways Bankruptcy Case: Creditors Asked To Submit Claims By July 4

The resolution professional for Jet Airways (India) Ltd., whose bankruptcy case was admitted to the National Company Law Tribunal last week, has invited claims from all creditors to the crisis-hit airline.

Jet Airways owes over Rs 8,500 crore to a consortium of 26 lenders led by State Bank of India, and over Rs 13,000 crore to vendors and 23,000-odd employees in salary dues.

"The creditors of Jet Airways are hereby called upon to submit their claims with proof on or before July 4, to the interim resolution professional. Financial creditors shall submit their claims with proof by electronic means only," resolution professional Ashish Chhawchharia of Grant Thornton said in a public notice. All other creditors shall submit their claims with proof in person, by post or by electronic means, it added.

The lenders, which have been controlling Jet Airways since March 25 with 51 percent stake, had on June 17 decided to take the airline, which stopped flying on April 17, to the NCLT as they could not find a buyer.

The only preliminary bid from the Etihad-Hinduja combine reportedly wanted the banks to take 90-95 percent haircut and also exemptions from open offer norms—conditions that were unacceptable to lenders.

On June 20, NCLT admitted the Jet Airways’ bankruptcy case filed by State Bank of India and told the resolution professional to try and finish the resolution process in three months, even though the law allows six months, as "the matter is of national importance".

On Monday, Jet Airways shares rose 1.04 percent to Rs 73.20 apiece on the BSE while the benchmark Sensex shed 0.18 percent to end the day at 39,122.96 points.

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