Jet Airways resolution faces difficulties due to prevailing pandemic situation: RP to airline staff

The slowdown because of the Covid-19 pandemic may be a big hurdle for Jet Airways. The Resolution Professional (RP) of the airline in a letter to its employees has said that the Creditors along with him are trying their best to expedite the process, but it "is difficult to predict when it will be complete exactly."

A year since Jet Airways went belly up, it is still scouting for a buyer. In June this year, in the fourth attempt to find a buyer for the debt-strapped airline, two potential buyers had submitted resolution plans.

The CoC is now in the process of evaluating the aforesaid resolution plans and engaging with the two parties to assess the feasibility and viability of their respective plans for Jet Airways as well as ensuring compliance with applicable laws under extant insolvency laws and regulations.

As per procedure, once the assessment is complete, the CoC shall vote on the resolution plans which, in their opinion, would be in the best interest of the Company and all our stakeholders. For any resolution plan to be considered approved, it will need to secure the vote of at least 66 per cent of the CoC members in value terms.

Subsequently, upon approval of a resolution plan by Hon'ble NCLT, the Company will be handed over to the successful resolution applicant in the manner contemplated under the approved resolution plan.

Assurance to employees

Ashish Chhawcharria, the RP has assured the employees that the team is working towards finalising the buyer, however, he has also warned about the impact of the Covid-19 pandemic among other things.

"While the CoC and the RP are taking all necessary steps to expedite the process, is difficult to predict when it will be complete exactly. The complications are multiplied to the prevailing pandemic situation, but please be assured that the CoC and I are doing everything possible to conclude the process at the earliest," he said in the letter reviewed by BusinessLine.

The CoC and the undersigned are now in the process of evaluating the aforesaid resolution plans and engaging with the RAs to assess the feasibility and viability of their respective plans for Jet Airways as well as ensuring compliance with applicable laws under extant insolvency laws and regulations.

The RP further informed that all the creditors/stakeholders, including employees/workmen should be paid strictly under the terms and timelines laid down in the approved resolution plan and extant laws in this regard.