Logistics

Jet Airways to relinquish HQ building in 45 days

Forum Gandhi Mumbai | Updated on August 29, 2019

12/04/2019 Mumba . Jet Airways head office in Mumbai. Photo By. Paul Noronha   -  BUSINESS LINE

Jet Airways will move out of its headquarters here in 45 days following an agreement between the property owners and the resolution professional (RP) appointed to oversee the airline’s insolvency process.

The owners of Siroya Centre had approached the Mumbai Bench of the National Company Law Tribunal (NCLT), wanting Jet to be evicted from the property on account of non-payment of dues.

The Bench was informed on Wednesday that the property owners, Lucky Star, and the RP had come to a consensus on the same.

Synergy Group bid

The RP, Ashish Chawcharia, also informed the court that he was in constant conversation with South America’s Synergy Group, which had submitted an expression of interest (EoI) last week. To accommodate their bid, the deadline to submit the EoI has been extended to August 31.

“I am positive of this EoI. I am going to be meeting the stakeholders of the company to discuss the case further,” Chawcharia told the NCLT.

Pending salaries

Meanwhile, the counsel representing one of the employee unions raised concerns over pending salary issues.

Chhawchharia informed the court that they were mindful of the fact that careers were at stake and they were doing what they could to keep the company as a going concern.

“Part payments for 200 employees have been made. We have deposited Provident Fund till March. We will also give TDS certificates by Thursday,” he added.

The RP further said that they were exploring the possibility of liquidating assets. In addition, he has sought more interim funding from the Jet Committee of Creditors (CoC).

Raising concerns over monies being stuck in Bangladesh, Chawcharia said: “About ₹70 core is lying in the company’s bank account in Bangladesh. There is a forex issue in that country. Not just Jet, even Air India has a large amount pending. They are creating roadblocks for remittance.”

He further said efforts to rectify the same were being made at the government level. “We will write a letter to their ministry to try and facilitate the same,” he added.

The court had admitted the case on June 20. The NCLT Bench had said that since the matter was of national interest the RP should look at finding a resolution within 90 days. Usually, the time frame is 180 days.

However, sources said that given the complexity of the case “it’s highly unlikely that they will be able to meet the deadline”.

Published on August 29, 2019

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