Jet Airways Owes Nearly Rs 8,500 Crore To Financial Creditors
The claims were declared on the airline’s website by Ashish Chhawchharia, the resolution professional.
Jet Airways (India) Ltd., admitted for insolvency resolution after being grounded, owes financial creditors Rs 8,463 crore.
Banks and financial institutions had submitted claims worth Rs 10,231 crore, according to admitted claims disclosed by resolution professional Ashish Chhawchharia on the company’s website. Of these, Rs 337 crore worth of claims were rejected and Rs 1,431-crore claims are still under verification.
State Bank of India with an exposure worth over Rs 1,600 crore is the largest lender in the consortium, followed by Yes Bank Ltd. and HSBC Middle East with exposure of over Rs 1,000 crore each. Punjab National Bank has admitted claims worth Rs 963 crore. IDBI Bank Ltd., Canara Bank and ICICI Bank Ltd. all have admitted claims worth over Rs 500 crore.
Operational creditors, other than workmen and employees, have made a claim of over Rs 12,000 crore. The resolution professional, however, is yet to admit them. Similarly, employees and workmen sought dues worth over Rs 400 crore, which are under review.
In his note, Chhawchharia said that the claims that have been admitted may undergo certain changes once he receives the clarifications he has sought from the creditors.
On June 20, the Mumbai bench of the National Company Law Tribunal admitted Jet Airways under the insolvency and bankruptcy code, appointing Chhawchharia to manage the company till a resolution is found.
The committee of creditors to the beleaguered airline met earlier this week to discuss the modalities of seeking expressions of interest from prospective bidders, while also stating that the resolution professional will release an advertisement for the same by the end of this week.
The financial creditors have also begun voting on a proposal for $10 million in interim finance for the resolution professional to manage the operations of the airline. While Jet Airways has been grounded since April, there is some back office and data-related work that is continuing, a person in the know has confirmed.
Two previous attempts to rope in fresh equity into the airline have already failed, forcing lenders to approach the insolvency route.