Jet Airways lenders vote on proposals for resolution under IBC

Industry:    2019-07-20

The committee of creditors (CoC) of Jet Airways is voting electronically on a clutch of resolutions as part of the corporate insolvency resolution process (CIRP). The window for e-voting under the Insolvency and Bankruptcy Code (IBC) opened on Thursday and will end on Friday.

Resolutions up for vote include a $10-million interim fund infusion into the airline, eligibility criteria for potential bidders, appointment of consultants for valuation of the company’s assets, among others.

On Thursday, Jet Airways’ resolution professional disclosed that creditors have claimed 24,887 crore of dues under IBC. Financial creditors who have the first right to proceeds from a bankruptcy resolution have claimed 10,231 crore, while 2,400 operational creditors have claimed 12,372 crore.

The resolution professional also said of the total 24,887 crore worth of claims, it has admitted claims of 8,462.79 crore, all of them from financial creditors. Claims of about 15,044 crore were being verified, while claims worth 1,380.82 crore were rejected.

The Mumbai bench of the National Company Law Tribunal (NCLT) on 20 June admitted Jet Airways for proceedings under the IBC after lenders referred it to the tribunal. A consortium of 26 bankers led by the State Bank of India approached the tribunal to recover dues of more than 8,500 crore.

The lenders have been trying to sell the beleaguered airline as a going concern for the past five months. Jet Airways has not flown since 18 April because of acute fund crunch.

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