FE: Jet Airways pilots planning to move NCLT demanding dues as hopes for revival dim

12 June 2019: As hopes dim further for the survival of the airline, a section of Jet Airways pilots plans to soon file a plea with the National Company Law Tribunal (NCLT) against the defunct carrier to recover unpaid salaries and other dues, sources said.

Jet Airways has not paid salaries to its pilots since January. The National Aviators Guild, one of Jet’s pilots’ unions, has engaged a legal representative and may approach the tribunal soon, a person involved in the process said.

This development comes a day after two operational creditors Shaman Wheels and Gaggar Enterprises filed separate insolvency pleas with NCLT in Mumbai. Shaman Wheels, a car supplier, has dues of around `6 crore. Gaggar Enterprises is a packaged water supplier. NCLT will hear the pleas of the operational creditors on Thursday.

Meanwhile, a Dutch court has already declared the grounded airline bankrupt following a plea filed by two European operational creditors, H Esser Finance and Wallenborn Transport.

Lenders are yet to appeal to that order as they grapple with the implications of the overseas bankruptcy ruling on the airline, FE had earlier reported.

The airline ceased operations on April 17 after a State Bank of India-led consortium of lenders refused to provide emergency finding.The lenders initiated the sale of 75% stake in Jet Airways in April, after the airline failed to meet its debt obligations. The grounded carrier reportedly owes over Rs 8,000 crore to lenders.

Abu Dhabi-based Etihad Airways, a strategic partner of Jet Airways, was the only party to show any interest at the time. Etihad had also put forth several conditions to the lenders, including seeking a debt waiver. According to several reports, the Hinduja Group, which was considering putting in a bid, has also bowed out of the negotiations. Hinduja Group representatives were not available for comment at the time of going to press, while Etihad Airways termed the reports speculative.

The Financial Express reported

Categories: General News, India Bankruptcy

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