July 12, 2019

Netherlands-Based Bankruptcy Administrator Moves NCLAT On Jet Insolvency Case; Agrees Not To Sell Its Seized Assets

[ By Bobby Anthony ]


A Netherlands-based bankruptcy administrator has moved the National Company Law Appellate Tribunal (NCLAT) regarding the Jet Airways matter, which has agreed to hear the case.

The Dutch bankruptcy administrator has been asked by the appellate tribunal to assist in the insolvency proceedings of Jet Airways going in India.

Significantly, the Netherlands-based insolvency court administrator has also told the NCLAT that it will sell the confiscated assets of Jet Airways. This includes a Jet Airways aircraft, which was parked in the Schiphol Airport at Amsterdam.

Meanwhile, the NCLAT has issued notice to the consortium of Jet Airways’ lenders directing them to file their reply within two weeks.

It has list the matter on August 21, for the next hearing.

In this connection, it may be recalled that earlier the NCLT’s Mumbai bench had rejected the Dutch insolvency administrator's appeal to recognize their proceedings.

Incidentally, Jet Airways has also been facing insolvency proceedings in the Netherlands and the airline was declared bankrupt there in response to a complaint filed by two of its European creditors.

In the Netherlands, H Esser Finance Company and Wallenborn Transport had filed a petition in April 2019 citing unpaid claims worth around Rs 280 crore.

After this development, a trustee-in-charge was appointed by the Dutch court and it had approached its Indian counterpart to access the financials as well as assets of the airline.

Jet Airways has not flown since April 18, is going through insolvency in India after a consortium of 26 bankers led by State Bank of India had approached the NCLT to recover dues of over Rs 8,500 crore.

Apart from banks, it also owes over Rs 10,000 crore to its hundreds of vendors, primarily aircraft lessors and more than Rs 3,000 crore to its employees.

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