Jet’s rescue postponed

NEW DELHI: The deadline for completion of Jet Airways (India) Ltd’s insolvency resolution process, which was earlier extended till August 21 due to the national lockdown, will be extended further because of the pandemic.

In a letter to Jet Airways employees on Thursday, a day before the end of the latest deadline for the insolvency process, the lenders-appointed resolution professional (RP) Ashish Chhawchharia said it is “difficult” to give a time frame for completion of the insolvency process because of the Covid-19 crisis.

“While the COC (Committee of Creditors) and the RP are taking all necessary steps to expedite the insolvency process, it is difficult to exactly predict when it will be completed,” Chhawchharia said in the letter. “The complications are multiplied due to the prevalent pandemic situation, but please be assured that the COC and I are doing everything possible to conclude the process at the earliest,” he added. A copy of the letter has been reviewed by Mint.

The insolvency process for Jet Airways, grounded since April 2019 due to a severe cash crunch, was earlier supposed to be completed by June 13. This was extended to August 21. When contacted, the RP said the deadline for completing the insolvency process has been extended due to the Covid-19-related restrictions. He said also that a fresh deadline for completion of the process hasn’t been announced due to Covid-19 related uncertainties.