17 July 2019: The committee of creditors (CoC) of Jet Airways will vote on Thursday on whether to pump in $10 million into the airline as interim funding, said a person aware of the development.
This, along with other resolutions, was discussed at the first CoC meeting of Jet Airways on Tuesday. The other resolutions included calling for bids and admission of claims by creditors.
“We will seek proposals from investors in the coming weeks and investors who had shown interest in the airline before it was referred to NCLT will have to send a fresh proposal,” the person mentioned above said on condition of anonymity.
The advertisements for these will be published soon, he said.
The Mumbai bench of the National Company Law Tribunal (NCLT) on 20 June admitted Jet Airways under the Insolvency and Bankruptcy Code (IBC) after lenders referred it to the bankruptcy tribunal.
Jet Airways has not flown since 18 April because of funding woes.
A consortium of 26 bankers led by the State Bank of India had approached the tribunal to recover dues of more than ₹8,500 crore. The lenders have been trying to sell the beleaguered airline as a going concern for the past five months.
Apart from banks, the airline also owes more than ₹10,000 crore to hundreds of vendors, primarily aircraft lessors, and over ₹3,000 crore to its employees who have not been paid since March.
The airline has had negative net worth for long and has run a loss of more than ₹13,000 crore in the past few years. Its total liabilities amount to over ₹15,000 crore.
The NCLT will hear the insolvency case and the progress report by the insolvency resolution professional (IRP) on 23 July.
The tribunal has ordered the IRP to complete the IBC process in three months, though the law allows six months, saying “the matter is of national importance”.