CoC declines to release one month salary to Jet employees

Forum Gandhi Mumbai | Updated on August 01, 2019

Last date to submit EoI for Jet assets set to August 3

There is no respite for Jet Airways employees as the Committee of Creditors (CoC) expressed inability to infuse interim capital into the debt-strapped airline.

Lenders voted on evaluation criteria for potential bidders as the last date to submit the Expression of Interest (EoI) has been set to August 3.

The National Company Law Tribunal (NCLT) had asked the lenders to consider releasing one month’s salary on a plea from the employees.

“The lenders had empathy towards the employees but the CoC is struggling to meet the costs of the current process. They are unable to infuse future capital till the time the process is through,” said a source close to the development.

Speaking to BusinessLine, Rahul Oak, counsel representing the employee associations, said: “We will move a formal Miscellaneous Application regarding releasing at least one month’s salary as it is prudent to the survival of the company.”

The company was dragged to the NCLT by its lead lender, State Bank of India, on June 20. Ashish Chhawchharia of Grant Thornton India was appointed as the Resolution Professional (RP) by the NCLT.

According to sources, the CoC also decided that potential bidders for Jet assets should have a net worth of at least ₹1,000 crore.

Another source said, “It was a review status, and working out finalising the scoring pattern of the evaluation process to be laid for the EoI. We also discussed draft terms for RFP (Request For Proposal) to invite binding bids. It will be both qualitative and quantitative methods.”

The source added, “The asset preservation team is evaluating and working towards preserving the assets of the company— six Boeing 777, three Boeing 737 and 2 A330 owned by the airline, along with engineering spare parts, and a few properties.”

Players including Hinduja, Etihad, Apollo Tyres, AdiGro, among others, seemingly interested in buying Jet assets though formal bids are yet to be placed by anyone.

Published on August 01, 2019

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