Logistics

Jet gets NCLT nod for 90-day extension to resolution process

Our Bureau Mumbai | Updated on March 18, 2020 Published on March 18, 2020

The Mumbai Bench of the National Company Law Tribunal (NCLT) has approved a plea by Jet Airway’s lenders seeking an extension to the corporate insolvency resolution process (CIRP) process by another 90 days.

“Today (March 18) the plea moved by the Resolution Professional (of Jet Airways) was allowed. The judge has allowed the extensions of the CIRP by 90 days,” said a person in the know. Advisory firm Grant Thornton India’s Ashish Chhawchharia had been appointed as the Resolution Professional (RP) by Jet’s lenders.

The 270-day CIRP period of the grounded company ended on March 15. Under the provisions of the Insolvency and Bankruptcy Code (IBC), Jet can get a 60-day extension from the bankruptcy tribunal. The grounded airline’s RP had proposed an extension of 90 days to the Committee of Creditors (CoC) last week.

A consortium of Russian government-backed Far East Development Fund, in partnership with Enso Group, Prudent ARC and Synergy Group, had submitted an expression of interest (EoI). But no resolution plan had been submitted by any of the suitors.

Jet grounded its operations last April and is undergoing bankruptcy proceedings at the NCLT.

According to the most recent creditors’ document on the airline’s website, claims worth over ₹36,090 crore against Jet Airways have been received so far, of which the RP has so far admitted claims worth around ₹14,640 crore.

Published on March 18, 2020
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