Jet Airways Ltd has entered into a conditional sale and purchase agreement with KLM Royal Dutch Airlines to liquidate the assets of the bankrupt airline in the European country. The liquidation process in the Netherlands is being monitored by a Dutch trustee appointed by a local court.
The pact was signed on 13 January, Jet Airways said in a regulatory filing.
“The proposed resolution is subject to the completion of several conditions, including statutory and regulatory clearances, both under the Indian and Dutch laws," the airline said.
A liquidation process is underway and the resolution professional overseeing the Netherlands business of the airline has agreed on a cooperation protocol with the Dutch trustee.
The proposed transaction, if completed, will have no personal or direct benefit to the promoters or the promoter group of the company, Jet Airways said.
The transaction will only involve a sale of part of the company’s business and will not impact the shareholding pattern of the company in any manner, it added.
The committee of creditors (CoC) had approved the liquidation of the airline’s business in the Netherlands. Two local creditors--H Esser Finance Company and Wallenborn Transport --filed a petition against Jet Airways in April 2019, citing unpaid claims worth around ₹280 crore.
In September 2019, the National Company Law Appellate Tribunal had allowed the Dutch court administrator to attend CoC meetings on the resolution of airline. The appellate tribunal also set aside a ruling by National Company Law Tribunal (NCLT) that refused to recognise Dutch insolvency proceedings.
As far as India business of the carrier is concerned, the CoC is exploring various options to restructure the debt and maximise the value of its stakeholders, the airline said.
Jet Airways was admitted to the Mumbai bench of NCLT for insolvency proceedings in June 2019.
The grounded airline owes more than ₹8,500 crore to lenders. It also has a large debt by way of accumulated losses to the tune of ₹13,000 crore, vendor dues of over ₹10,000 crore and salary dues of over ₹3,000 crore. State Bank of India is leading the consortium of lenders.