NCLT Warns Jet Airways Committee Of Creditors Of Contempt Proceedings
Jet Airways logo seen in India. (Photographer: Dhiraj Singh/Bloomberg)

NCLT Warns Jet Airways Committee Of Creditors Of Contempt Proceedings

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The National Company Law Tribunal on Wednesday warned Jet Airways (India) Ltd. Committee of Creditors of contempt proceedings if they do not release interim funds to the resolution professional by Jan. 20 for completion of insolvency proceedings.

"We again reiterate and instruct the Committee of Creditors to release the interim amount as required by the RP of the grounded airline, so that the corporate insolvency resolution process is completed and the assets of Jet are not devalued," Mumbai-bench of NCLT in its order said.

Further, the bench comprising Bhaskara Pantula Mohan and Rajesh Sharma directed the CoC to at least pay the amount by Jan. 20, or the tribunal will initiate contempt proceedings against the defaulting members.

The tribunal directed the CoC members, who have not honoured the order of the court, to remain present on Feb. 19 - the next date of hearing.

The NCLT also directed Indian Overseas Bank, which is in the process of filing application at the tribunal for exemption from payment as they are under Prompt Corrective Action restriction, to approach the government authorities concerned in this regard.

This direction came after the resolution professional pointed out that it is under tremendous pressure as many CoC members, in spite of the tribunal's earlier order, have not released funds.

The lenders had in-principle sanctioned Rs 63 crore to the RP. Lead banker State Bank of India and two other banks had reportedly already disbursed their portion of the interim amount.

Meanwhile, the RP submitted its progress report saying that under the fresh expression of interest, which was decided on Dec. 17, has received interest from two parties.

The CoC has decided Jan. 15 as the last date of submission of EoIs and Feb. 17 as the last date of submission of resolution plans, he said.

South America's Synergy Group has filed its documents under this fresh EoI, he said, adding the other one is a domestic company, but not in the airline business.

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