Jet Airways suspended operations in April due to acute fund crunch (Reuters file)
Jet Airways suspended operations in April due to acute fund crunch (Reuters file)

Financial results for June quarter not yet prepared: Jet Airways’ RP

  • The affairs of Jet Airways are now being managed by resolution professional Ashish Chhawchharia under the insolvency law
  • Chhawchharia said prior to the commencement of the resolution process, directors, CEO, CFO, company secretary and other top management personnel had resigned from the company

New Delhi: Jet Airways (India) Ltd has not been able to start preparing its June quarter results as it did not have access to the financial data, the grounded airline said on Friday.

“...I would like to mention that prior to commencement of the corporate insolvency resolution process (CRIP), directors, CEO (chief executive officer), CFO (chief financial officer), CS (company secretary), including other top management personnel had resigned from the company. Further, access to data was not available until mid-July," Jet Airways’ resolution professional, Ashish Chhawchharia, said in a stock exchange notification.

“Pending book closure process, financial results for the quarter ended 30 June 2019 have not been prepared/finalized till date and, hence, the requirement under Regulation 33 of Sebi LODR cannot be complied with within the prescribed timelines," Chhawchharia said, adding that all attempts are being made to regularise processes at the earliest.

Jet Airways suspended its operations in April due to an acute fund crunch. Most employees, including senior staff, have left the company.

On 20 June, the Mumbai bench of the National Company Law Tribunal (NCLT) admitted the company under the Insolvency and Bankruptcy Code.

Subsequently, Grant Thornton Advisory Pvt. Ltd’s Ashish Chhawchharia was appointed the insolvency resolution professional (IRP) by the lenders of the airline.

A consortium of 26 banks led by the State Bank of India (SBI) had approached the tribunal to recover dues of over 8,500 crore. However, the lenders have so far failed to sell the airline as a going concern.

The chances of revival took a huge hit recently, with billionaire Anil Agarwal’s Volcan Investment, which had submitted an expression of interest (EoI) for the grounded airline, deciding not to pursue the deal.

“On further evaluation and considering other priorities, we intend to not pursue this further," Agarwal had said.

Etihad Airways PJSC, which owns a 24% stake in Jet Airways, said last week that it has not submitted an expression of interest for its grounded partner due to unresolved issues concerning the Mumbai-based airline’s liabilities.