November 05, 2019

Committee Of Creditors Looks At Liquidating Assets Of Jet Airways After Grounded Airline’s Bidders Show No Interest

[ By Bobby Anthony ]


The Committee of Creditors of the grounded Jet Airways plan to discuss the next step for the cash-strapped airline during a forthcoming meeting in December after no active bidder has emerged so far.

Incidentally, Jet Airways owes about Rs 30,907 crore to its creditors. However, the grounded airline’s interim resolution professional has admitted claims worth over Rs 14,000 crore.

Earlier, it was expected that the Synergy Group could finally bring Jet Airways out of its woes, but the South American conglomerate has failed to make any bid yet though it had been given time until November 15 to finalize a resolution plan.

Meanwhile, in a related development, the grounded airline’s Interim Resolution Professional has also started to collate its assets.

Jet Airways’ most valuable assets are considered to be its slots, which might now be allotted to other airlines, since the Directorate General of Civil Aviation (DGCA) had given the airline time till mid-January, to file its slot request for the summer season.

As things stand, the slots of the airline for the previous season have already been re-allocated to other airlines.

It may be recalled that the grounded Jet Airways has been grounded for nearly over seven months after it announced what it had called a temporary shutdown on April 17, 2019.

Later, Jet Airways was finally admitted for insolvency on June 20. The 180-day deadline for completing the corporate insolvency resolution process (CIRP) will come to an end on December 16.

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