2 shortlisted firms to submit final offer for Jet by next week
Final plan will be put to vote by end of September or early October
The resolution process of the grounded Jet Airways has reached the final stages as the two shortlisted entities are expected to come up with their final offers by early next week.
The final plan from the two entities will be put to vote by the end of this month or early October, sources aware of the development said.
In the committee of creditors meet, held earlier this week, lenders emphasised on getting better commercial terms and plans, which should be in compliance with insolvency and bankruptcy provisions.
“The plans are being reviewed. If we are able to put the plans to vote by the end of this month, we have to file the application in National Company Law Tribunal (NCLT) for approval, provided there is a successful plan. So, hopefully by midoctober it should be wrapped up,” said a source.
For any plan to pass the muster, it will have to secure 66 per cent of the votes of the lenders, who are part of the committee of creditors. The two entities had earlier submitted their respective plans but post discussions with the lenders they had to come up with revised resolution plans.
“Once the resolution plan is approved by the majority of the committee of creditors, the resolution professional will move an application in the NCLT under Section 30 to get the approval of the tribunal. The provision under the code says that even the dissenting lenders are entitled to whatever is agreed in the resolution plan and should not be less than what they would have got under Section 53,” said Ashish Pyasi, associate partner, Dhir & Dhir Associates.
After receiving 12 expressions of interest in July, it was the airline company’s fourth attempt to find suitors. Two consortiums made the cut to present a plan to revive the airline, a year and half after it shut operations. The first consortium is led by Kalrock Capital and the second consortium is of Imperial Capital Investments LLC, Flight Simulation Technique Centre, and Big Charter.
Sources said the bidders were seeking clarity from the Indian government on airport slots and traffic rights of Jet Airways. The airport slots and traffic rights of the airline company have been temporarily given to other airline companies. Earlier, South American entity Synergy Group, which had shown interest in reviving the airlines, had wanted assurance from the government on the issue of Jet’s international routes and its slots.
The airline operated its last flight between Amritsar and Mumbai on April 17, 2019, as lenders turned down its demand for emergency funding. It has been under insolvency since June last with admitted claims of ~1,572.30 crore. The amount of claims received is to the tune of ~37,543 crore, of which financial creditors have claimed ~11,290 crore.