BackJet Airways’ CoC gives nod to all resolutions
Bid evaluation criteria among plans approved by the creditors’ committeeThe lenders had been trying to sell the beleaguered airline as a going concern for the past five months
PremiumMumbai: The committee of creditors (CoC) of Jet Airways (India) Ltd on Tuesday approved all resolutions on its agenda including the evaluation criteria for potential bidders of the grounded airline.
Ashish Chhawchharia, the resolution professional appointed by the lenders for the resolution process of Jet Airways, informed the stock exchanges that all resolutions were passed with the required majority.
“...we wish to inform you that the e-voting for the second meeting of committee of creditors of Jet Airways (India) Ltd was concluded at 6:00 pm IST on 6 August, 2019, in accordance with the Regulation 26 of the Insolvency & Bankruptcy Board of India (Insolvency Resolution for Corporate Persons) Regulations, 2016, wherein all the resolutions, including the resolution for the approval of evaluation matrix and request for resolution plan were passed by the CoC with requisite majority," Chhawchharia said in the statement.
A bid evaluation criteria is a set of parameters used to weigh bids to see which one would give maximum value to the seller.
The CoC had earlier decided to allow bids for Jet Airways from investors with a minimum net worth of ₹1,000 crore, among other conditions.
Jet Airways was grounded on 18 April due to an acute fund crunch. On 20 June, the Mumbai bench of the National Company Law Tribunal (NCLT) admitted Jet Airways under the Insolvency and Bankruptcy Code (IBC).
A consortium of 26 banks led by the State Bank of India had approached the tribunal to recover dues of more than ₹8,500 crore.
Lenders have been trying to sell the beleaguered airline as a going concern for the past five months.
The NCLT will hear the insolvency case and a progress report from the insolvency resolution professional on Thursday.
The lenders of the grounded airline have already agreed to extend the deadline for submitting expressions of interest (EoI) by a week to Saturday.
The NCLT bench also said it will hear the claims of Luckystar Pvt. Ltd, which owns Siroya Centre, the former headquarters of Jet Airways, at its next hearing on Thursday. Luckystar had earlier approached the NCLT for taking possession of Siroya Centre from Jet Airways after its lease expired on 7 June.
As many as four potential bidders have evinced interest in Jet, Mint reported on 1 August, though talks for a potential bid are still in early stages. SBI Capital Markets, which is advising lenders in finding new investors, has reached out to as many as 20 potential investors, the report said.
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 (RP) of Jet Airways said that out of the ₹24,887 crore claims, it has admitted claims of ₹8,462.79 crore, all of them from financial creditors. Claims of about ₹15,044 crore are under verification, while claims of ₹1,380.82 crore were rejected.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
