FE/CNBCTV18: NCLT defers Jet Airways insolvency case hearing to 20 June

19 June 2019: The Mumbai bench of the National Company Law Tribunal has deferred the Jet Airways insolvency hearing to 20 June 2019, CNBC TV-18 reported.

The NCLT was to take up the matter on Wednesday as SBI-led consortium of lenders moved the tribunal for insolvency proceedings against Jet Airways.

SBI had finally applied for insolvency earlier this week under section 7 of Insolvency and Bankruptcy which deals with financial creditors. State Bank of India had said that the lenders were forced to drag the airline to NCLT as they had waited long for the resolution plan to materialise. Moreover, the one prospective investor in Jet Airways also demanded SEBI exemption which will work better with IBC in the picture. Jet Airway owes over Rs 8,500 crore to the 26 lenders.

Two of Jet Airways’ operational creditors, Shaman Wheels and Gaggar Enterprises, earlier moved NCLT on 10 June 2019 and applied for insolvency proceedings against the Naresh Goyal-founded airline. However, the Mumbai bench of NCLT adjourned the same to further hearing on 20 June.

Meanwhile, Jet Airways’ Independent Directors Ashok Chawla and Sharad Sharma also called it quits due to non-compliance of the board with the provisions of the Companies Act, non-appointment of additional directors and the halt in the process of bank-led resolution plan, Jet Airways said in a BSE filing on Tuesday.

Timeline of Jet Airways troubles

Jet Airways troubled lot was witnessed in 2018 when it failed to make payments to the lenders. As the airline struggled to stay afloat, the carrier’s board demanded stepping down of Naresh Goyal and his wife Anita Goyal from the board of members on 25 March 2019. This was a part of the resolution plan which was approved by the Jet Airways board. Following this, the airline announced a temporary suspension of its operations on 17 April 2019. Jet Airways has payment dues of over Rs 10,000 crore to its vendors and salary dues of over Rs 3,000 crore.

As reported by Financial Express

Categories: General News, India Bankruptcy

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