Bengaluru: Country's bankruptcy court, National Company Law Tribunal (NCLT), on Thursday decided to admit an insolvency petition against Jet Airways Ltd filed by its creditors in an attempt to salvage some of their ownership.
The insolvency process will allow lenders led by State Bank of India to sell the company as a whole or sell its assets and bring to an end weeks of uncertainty over the airline's future.
NCLT instructed Interim Resolution Professional (IRP) to finish insolvency process for the airline in three months since matter is of national importannce.
The IRP has submit fortnightly progress report on Jet Airways.
Lenders to Jet Airways (India) Ltd on Monday decided to start bankruptcy proceedings against the grounded airline, all but ending hopes of a recovery.
“A meeting of lenders was held today to consider the way forward in respect of Jet Airways. After due deliberations, lenders have decided to seek resolution under IBC (Insolvency and Bankruptcy Code, 2016) since only a conditional bid was received and requirement of the investor for Sebi exemptions and resolution of all creditors is possible under IBC," the statement said by the consortium of lenders.
Last week, two operational creditors, Shaman Wheels Pvt. Ltd and Gaggar Enterprises Pvt. Ltd, filed separate insolvency pleas against Jet Airways at NCLT, Mumbai, for recovery of their dues.
The pilots’ union of Jet Airways, National Aviator’s Guild, also plans to file a plea against the grounded airline at NCLT for non-payment of salaries and not providing a provision for gratuity payment to its staff.
Aviation analysts said it is unlikely that the lenders will be able to recover a substantial portion of their dues by referring the airline to NCLT, Mint reported.