NCLT Grants 90-Day Extension For Jet Airways Insolvency Process
The National Company Law Tribunal has allowed a 90-day extension for the corporate insolvency resolution process of Jet Airways (India) Ltd. as the grounded airline failed to attract any bidders.
The resolution professional for Jet Airways had last week filed an application with the NCLT seeking the extension. The tribunal’s bench, comprising Bhaskara Pantula Mohan and Rajesh Sharma, granted the extension after the Committee of Creditors voted 70 percent in favour for the same.
The CoC had on February 18 set March 10 as the deadline for submission of bids for the grounded airline after South American conglomerate Synergy Group and New Delhi-based Prudent ARC failed to meet the previous deadline.
Later, Synergy Group backed out of the bidding process over slot issues. Russia's Far East Asia Development Fund also evinced interest but a deal didn’t materialise.
Jet Airways, which was grounded in April 2019, owes more than Rs 8,000 crore to banks. The NCLT had on June 20, 2019, admitted the insolvency petition filed by the lenders' consortium led by State Bank of India against Jet Airways.
The tribunal had also appointed Ashish Chhawchharia of Grant Thornton LLP as the resolution professional for the airline.
On Wednesday, Jet Airways shares fell 2.80 percent to Rs 15.65 apiece on the NSE while the benchmark Nifty 50 shed 5.56 percent to end the day at 8,468.80 points.