Home / Companies / News /  Jet Airways to be run by 7-member monitoring panel under resolution plan

A seven-member monitoring committee will soon begin to manage the day-to-day affairs of Jet Airways till the resolution process for the airline is completed, the airline said in a regulatory filing. The development follows bankruptcy court's approval for the resolution bid jointly submitted by Murari Lal Jalan and Kalrock Capital for Jet Airways, the airline said in a regulatory filing on Saturday.

"The Resolution Plan submitted by the consortium of Murari Lal Jalan and Florian Fritsch (Resolution Applicant) in the CIRP of Jet Airways (India) Limited that was approved by the members of committee of creditors of the Company (CoC) in their 17th meeting, has now been approved/allowed by the National Company Law Tribunal, Mumbai Bench (NCLT) on June 25, 2021, via order dated June 22, 2021, subject to certain directions which are to be issued by a separate order," the filing said.

Following NCLT's approval, Jet's corporate insolvency resolution process (CIRP) has ended and Ashish Chhawchharia has ceased to be the resolution professional of the company, effective on and from June 25, 2021. From now on, a monitoring panel with oversee the airline.

This panel will include three representatives nominated by the Jalan-Kalrock consortium. Three of the remaining seats will be filled by members appointed by the financial creditors with highest share in the CoC. An independent insolvency professional appointed by the financial creditors, preferably Chhawchharia, will also be part of the panel.

This committee will supervise the implementation of the resolution plan, Jet Airways further mentioned in its filing.  "... terms of appointment and duties of the monitoring committee will be as set out in the resolution plan and the day-to-day operations and the management of the company shall be carried out by the monitoring committee until the closing date as defined in the resolution plan."

The appointment of the monitoring committee, implementation of the resolution plan and duties and functions of the panel will be in accordance with the terms of the resolution plan and shall be subject to any directions that may be issued by the NCLT in this regard.

On June 25, NCLT published the written order approving Jalan-Kalrock consortium's resolution plan and the approval is subject to certain directions. A separate order regarding the directions would be issued later by the tribunal.

While clearing the resolution plan, NCLT also made it clear that it will not give any direction on the issue of airport slots for the airline, citing that the matter will be handled by the government or the appropriate authority concerned.

On June 22, Jalan-Kalrock consortium said it will decide on the next steps after receiving NCLT's written order and emphasised that it will work with the aviation authorities to see the airline taking wings again.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

Edit Profile
My ReadsRedeem a Gift CardLogout