Jet Airways is facing insolvency proceedings in the Netherlands where it was declared bankrupt in response to a complaint by two European creditors
Jet Airways has announced that its wide-body Boeing 777 aircraft under the custody of the Dutch administrator has been sold. In a regulatory filing on Saturday, the airline mentioned that the insolvency process against it the Netherlands now stands concluded after the sale.
The Boeing 777 aircraft was sold to IAGCAS 777, LLC for $9 million under the Dutch Insolvency Process.
“The sale of equipment is as per the terms of the protocol, whereunder it is agreed that the proceeds from the sale of equipment will be first utilised for the closure of Dutch Insolvency Process in Netherland, to ensure the company is no more declared insolvent in the Netherlands and balance funds, if any, shall be repatriated to India which shall be dealt as per the provision of the Insolvency and Bankruptcy Code," said Ashish Chhawchharia, Jet Airways Monitoring Committee-authorised representative, in the filing.
“We wish to further inform that subsequent to the sale of the Equipment and after completing the requisite formalities, the Dutch Insolvency Process shall stand concluded," Chhawchharia added.
Jet Airways was declared bankrupt in the Netherlands in response to a complaint by two European creditors. Thereafter, as per the Noord-Holland District Court order on May 21, 2019, insolvency proceedings were initiated against the airline.
Rocco Mulder was appointed as Dutch administrator in the insolvency proceedings to manage the estate of Jet Airways in Netherlands. He took custody of the company's assets in the country on the date of initiation of insolvency proceedings, which included one Boeing 777-300ER aircraft parked at Schiphol Airport.
Further, as per the direction of National Company Law Appellant Tribunal (NCLAT), Cross Border Insolvency Protocol was agreed between Chhawchharia, the erstwhile Resolution Professional of Jet Airways in India, and the Dutch administrator Mulder. The same was approved by the NCLAT on September 26, 2019.
The protocol was signed to co-operate with each other in the insolvency process with an aim to maximise the value to stakeholders and early resolution of ongoing litigations, the Jet Airways filing said.