NCLT Asks Jet Lenders To Release Lifeline Funds Within 15 Days

The National Company Law Tribunal on Wednesday directed the financial creditors of the grounded Jet Airways (India) Ltd. to release some interim lifeline funds within 15 days.

The lenders had in-principle sanctioned Rs 63 crore to the resolution professional and State Bank of India, the lead lender, had reportedly already disbursed its portion of Rs 10 crore.

However, other lenders like Yes Bank, Punjab National Bank, IDBI Bank, Bank of India, Indian Overseas Bank and Axis Bank are yet to release their portion.

Therefore the tribunal has directed these lenders to release the amount within 15 days.

The resolution professional of Jet Airways had moved NCLT on Sept. 20 seeking directions to the lenders, who own 51 percent in the airline since March, to release interim funds.

The lenders had earlier approved to sanction Rs 63 crore in interim funding to meet the day to day needs and also the fees for the RP.

The RP had informed the tribunal that if the interim financing is not done timely, the corporate insolvency resolution process would come to a halt.

Following this the lenders, who own 51 percent in the bankrupt company with no business or revenue, had approved interim financing measures in its previous meetings.

NCLT on June 20 admitted the insolvency petition filed by the lenders' consortium led by State Bank against Jet.

The tribunal has also appointed Ashish Chhauchharia of Grant Thornton as the resolution professional for the crippled airline that stopped operations on April 17.