Jet Airways insolvency process extended by 90 days

The Committee of Creditors had sought an extension from NCLT as South America's Synergy Group, a bidder for the bankrupt airline, wants more time for due diligence.
Jet Airways insolvency process extended by 90 days
Jet Airways insolvency process extended by 90 days
Written by:
Published on

The National Company Law Tribunal has approved the extension of the corporate insolvency resolution process (CIRP) of Jet Airways by 90 days.

The tribunal, comprising Bhaskara Pantula Mohan and Rajesh Sharma, gave their approval for the extension of time as the 180 days deadline for CIRP period of the grounded airline had ended on December 16.

The Committee of Creditors (CoC) of the airline had sought extension of the resolution period from the tribunal as South America's Synergy Group, a bidder for the bankrupt airline, wants more time for due diligence.

Further, lenders have also sought fresh expressions of interest (EoI) from two new bidders who have shown interest in reviving Jet. Reports indicate that one of the two new entrants to the scene, one is from West Asia and the other is an Indian entity backed by an investor from the UK.

The Synergy Group had failed to provide a resolution plan before December 16 deadline due to uncertainty on airport slots and would have to participate in a fresh bidding process proposed by lenders.

"Some of the criteria that needs to be resolved are that we are looking to float a new company free of all legacy liabilities of the erstwhile Jet Airways. We may want to look at partnering with an Indian partner. We also expect clarity on getting back Jet's airport slots, especially the domestic slots and seek further clarity on Heathrow, London, slots," the Synergy Group representative reportedly told the tribunal.

On Thursday, the NCLT had directed the CoC of Jet Airways to expedite their decision on seeking fresh expression of interest in view of new interest being shown for the grounded airline.

The tribunal had earlier in the month sought clarity from the government and the Directorate General of Civil Aviation (DGCA) regarding the slots of now insolvent Jet Airways.

Related Stories

No stories found.
The News Minute
www.thenewsminute.com