Logistics

Jet ‘optimistic’ on Synergy’s interest, NCLT bench told

Our Bureau Mumbai | Updated on September 20, 2019 Published on September 20, 2019

Synergy is eyeing a stake of at least 49 per cent in the airline   -  PTI

Tribunal directs creditors’ committee to sanction funds for CIRP process

The Resolution Professional (RP) for Jet Airways is “optimistic” about the Synergy Group’s interest in the debt-strapped airline, the Mumbai bench of the National Company Law Tribunal (NCLT) was informed on Friday.

The NCLT also directed the Committee of Creditors (CoC) to sanction the funds towards the Corporate Insolvency Resolution Process (CIRP) of the airline.

Counsel representing the RP said on September 20 that Synergy Group founder German Efromovich, who was in India earlier this week, met the lenders and Civil Aviation Ministry authorities.

He informed the bench that the RP was optimistic about their interest in the airline.

BusinessLine had reported that Synergy was the only one to sign the Non Disclosure Agreement, which was imperative for it to get access to the data room.

Synergy is eyeing a stake of at least 49 per cent in the airline. A source had told BusinessLine that Synergy may ask for a 60-80 per cent haircut from Jet Airways’ lenders as a precondition to pick up a stake.

The company may also ask lenders to convert 10-20 per cent of their debt into equity.

The bench also heard the miscellaneous applications on Siroya Centre, the headquarters of Jet Airways. In previous hearings, the court heard the application filed by Lucky Star, the owner of Siroya Centre.

The CoC and the RP were to submit the consent terms along with the minutes of the meeting and a confirmation that the proposal was being accepted; however, that was not done.

Hence, the CoC was directed to pass a resolution on the acceptance of the proposal.

The RP had also filed an appeal for the approved interim funding of ₹63 crore for the CIRP.

The court was informed that so far, only State Bank of India, the lead lender, had given ₹10 crore as its share, and that other banks had sanctioned about ₹17 crore, but no transfers had been made so far.

The bench directed the CoC to sanction and transfer funds soon.

Alongside the ongoing Jet Airways insolvency proceedings before the Dutch Bankruptcy Administrator which was being heard in the NCLAT, the RP has agreed to all the terms of a cooperation agreement between them.

Jet Airways was declared bankrupt in a Netherland court after two European creditors filed a complaint against the airline.

Published on September 20, 2019
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