FE: Insolvency: NCLT defers hearing on Jet Airways to June 20

14 June 2019: The National Company Law Tribunal (NCLT) on Thursday adjourned the hearing on Jet Airways’ insolvency case to June 20.

Two companies, Shaman Wheels and Gaggar Enterprises, had on Monday moved the insolvency court in Mumbai against the airline to recover their dues. The matter was slated to be heard on Thursday, but no one appeared on behalf of Jet Airways.

The NCLT will issue notices to the grounded airline and if no one appears on behalf of Jet on June 20, the tribunal may may decide to admit the insolvency pleas ex-parte.

The two operational creditors have already sent private notices to the airline. Shaman Wheels, a vehicle supplier, has dues of over `6 crore with Jet, while Gaggar Enterprises, a mineral water supplier, is owed a little over `53 lakh.

A section of Jet pilots is also planning to drag the grounded carrier to the insolvency court over pending salaries and other dues of around 600 pilots.

The airline has already been declared bankrupt overseas by a Dutch court. A court of North Holland passed the order ex-parte in response to a plea filed by two European operational creditors with dues of around `280 crore. An appeal has not yet been filed on behalf of the airline.

Hope is waning regarding the possibility of revival of the airline, as the lenders of Jet Airways have not made significant headway in its sale process. The State Bank of India-led consortium of lenders offered to sell 75% stake in the airline in April, after Jet Airways failed to meet its debt obligations. Only Etihad Airways had shown some interest at the time. The Hinduja group, which in May said it was evaluating the Jet opportunity, is yet to make a commitment, according to people involved in the proceedings.

Jet Airways halted operations on April 17 after lenders refused to provide emergency funding. Most of its slots have since been reallocated to other airlines by the civil aviation ministry.

The defunct airline is understood to owe over `8,000 crore to its financial creditors alone. Recently, the company announced they were not in a position to announce audited financial results for the financial year 2019. On Wednesday, the National Stock Exchange announced that Jet Airways will be excluded from the F&O (futures and options) segment from June 28.

The Financial Express reported

Categories: General News, India Bankruptcy

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