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The resolution professional of Jet Airways has filed an appeal with NCLT against at least five companies, including Jet Airways’ erstwhile partner, Etihad, and sister company Jet Privilege Private Limited, requesting a review of transactions between the airlines and these entities.
The application was filed under Sections 43, 45, 50 and 66 of the IBC which deal with preferential transactions and relevant time, avoidance of undervalued transactions, extortionate credit transactions, fraudulent and wrongful trading respectively.
One of the sources said that at least five companies have been part of this appeal, one of those is Etihad which purchased 24 per cent stake in Jet in 2013 for $379 million.
“The RP has made an appeal to the NCLT to investigate transactions related to the Heathrow airports slots given to Etihad which was Jet’s partner airline, and held 23 per cent stake. The appeal also includes a possible investigation on why Etihad did not support the airline financially at a time when it needed most.”
When contacted Etihad said it had “no comments to offer at this stage.”
Loyalty programme arm
Another major company is Jet Airways loyalty programme arm, Jet Privilege Private Ltd (JPPL) now known as InterMiles.
JPPL was incorporated in 2012 as a wholly-owned unit of Jet Airways but was hived off as an independent entity in 2014 after Etihad Airways PJSC bought a 50.1 per cent stake for $150 million valuing the firm at $300 million. Etihad’s investment in Jet Privilege was part of its overall $600 million investment in the airline announced in April 2013.
“The appeal includes an investigation on the said transaction too,” a source said. Post Jet’s grounding, the Enforcement Directorate (ED) too was investigating the said translation. However, there is no update on the said investigation at the moment.
JPPL remained unavailable to comment.
Speaking about the other companies that have been named by the RP, one of the sources said that “the other transactions which are being looked into were with a few leasing companies where a few lease rentals were higher than the others, and Special Purpose Vehicles were created for the same as well.”
There is no clarity on when this matter will be heard by NCLT.
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