19 July 2019: The resolution professional overseeing Jet Airways has received claims worth close to Rs 25,000 crore, and has so far accepted only about one third of the claims that came from financial creditors.
Grant Thornton’s Ashish Chhawchharia, who was appointed resolution professional (RP) for the grounded airline by the bankruptcy court last month, has received 16,643 claims from employees, financial institutions and operational creditors including Jet Privilege, the loyalty rewards company that Jet co-owns with Etihad Airways, and founder Naresh Goyal’s ticketing agency Jetair Private Ltd, according to the detailed list of claims put up on the the airline’s website by the RP.
The RP has accepted close to Rs 8,500 crore from financial institutions and is in the process of verifying claims worth Rs 15,000 crore.
He has rejected the rest. Chhawchharia will call for expressions of interest from potential bidders for the bankrupt airline on Saturday, a person in the know said. Bidders will have 15 days to respond.
Some potential bidders, including Hinduja Group and a venture formed by Jet’s employees and UK’s Adi Partners, have already met Chhawchharia, sources said.
The National Company Law Tribunal (NCLT) had last month admitted Jet Airways for insolvency resolution on a plea from State Bank of India.
SBI has claimed a total amount of Rs 1,139 crore, which has been admitted by the RP along with 36 other claims from financial creditors including 12 Indian banks, about 12 foreign banks and institutions, five lessors and four other entities.
One of the unexpected claims came from Jet Privilege, in which Jet owns a 49% stake with its partner Etihad holding the rest.
The royalty rewards company has made a claim for Rs 951 crore as an operational creditor. There are also claims from JetFleet, which in its website says it has a strategic association with Goyal’s Jetair, an entity named Jet Airways LLC that has claimed Rs 426 crore, and Jetair itself whose Rs 230-crore claim on fixed deposits has already been rejected. The RP also received claims of Rs 444 crore from over 2,000 workmen and employees of the airline.
Rival Air India has claimed Rs 189 crore while its engineering services arm has claimed Rs 38 crore. SpiceJet has claimed Rs 6 crore while GoAir has claimed Rs 20 crore.
There is also a Rs 585-crore claim from the International Air Transport Association (IATA) while Jet’s partner Etihad has claimed Rs 1,043 crore in one segment and Rs 64 crore in another. The first claim hasn’t been admitted. Etihad owns 24% shares of Jet. Industry watchers don’t expect creditors to get more than a fraction of what they have claimed. The airline is left with a fleet of just 14 planes.
A majority of its prime flight slots at India’s busiest airports have been allotted to its peers.