FE: NCLT to hear insolvency petitions against Jet Airways on June 13

11 June 2019: In the absence of any representatives from Jet Airways, the Mumbai bench of the National Company Law Tribunal (NCLT) on Monday decided to hear two separate petitions filed by the cash-strapped airline’s operational creditors, Shaman Wheels and Gaggar Enterprises, on June 13.

Adjourning the matter, the bench said that the court will serve a notice to Jet Airways.

According to the cause list available on the NCLT website, Gaggar Enterprises has also filed a second petition under Section 7 of the Insolvency and Bankruptcy Code, which allows a financial creditor to file an application against the corporate debtor.

Shaman Wheels, which provided car services to the airline for its pilots and other staff members, has dues of around Rs 6.17 crore pending from Jet Airways.

According to media reports, Gaggar Enterprises sold packaged drinking water to Jet Airways. The development comes at a time when banks are looking to resolve the once-premier airline’s debt issues outside the insolvency process.

Jet Airways owes more than Rs 8,000 crore to a consortium of banks led by the State Bank of India, while it has a much larger debt pile by way of accumulated losses to the tune of `13,000 crore, vendor dues of over `10,000 crore and salary dues of over `3,000 crore.

The banks have appointed SBI Capital Markets as the investment banker to find an investor for the company.

Bankers, after taking over the airline late March, had invited bids on April 8 to sell up to 75% stake in the crippled carrier that formally stopped operations on April 17.

The Financial Express reported

Categories: General News, India Bankruptcy

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