The Mumbai Bench of National Company Law Tribunal (NCLT) on Friday approved the extension of the Corporate Insolvency Resolution Process (CIRP) for Jet Airways by 90 days.
The extension comes after the CIRP did not make any headway during the mandated 180-day period. The Insolvency and Bankruptcy Code permits one-time extension up to 90 days by the NCLT in deserving cases.
Ashish Chhawchharia, the Resolution Professional (RP) for the defunct Jet Airways, had filed a miscellaneous application before the two-member Bench on December 13 where he also attached the minutes of the Committee of Creditors (CoC) meeting.
The CoC passed a resolution with vote share of 90.08 per cent for extension of the CIRP by 90 days. Following the resolution passed by the CoC, the NCLT ordered 90-days extension for completion of CIRP.
Two more interests
During one of the recent hearings, the RP had informed the court that he had received two early interests — one from an Indian entity backed by a UK-based firm, and another from a West Asian Fund — for picking up stake in the company.
As per FDI rules, an overseas airline can hold only up to 49 per cent stake in an Indian airline, with the balance being held by an Indian partner.
South American conglomerate Synergy Group was the only company to place a formal EoI for Jet before the deadline ended in October. Thereafter, Synergy asked for more time to submit a formal bid.
Chhawcharia also said that the CoC will decide on another round of Expression of Interest (EoI) by December 21. What this essentially means is that Synergy, if interested, will have to participate in a fresh EoI along with other potential parties.
In the previous hearing held on December 17, a representative of Synergy informed the Bench that it wanted another extension as it had a few critical issues that needed to be resolved before it could formally take over Jet Airways.
He also told the tribunal that Synergy had submitted a draft business plan to Chhawchharia and they were to meet representatives of the Directorate-General of Civil Aviation and Ministry of Civil Aviation. The next hearing of the Jet Airways matter is listed for January 8.