SBI-Led Lenders Consortium Names Grant Thornton India Man As Resolution Professional For Jet’s Bankruptcy Proceedings

The State Bank of India (SBI) led lenders consortium has named Grant Thornton India’s partner and Head of Restructuring Services, Ashish Chhawchharia, as the resolution professional (RP) for the bankruptcy proceedings of Jet Airways.

Grant Thornton Indi a will also assist resolution professional Ashish Chhawchharia find a prospective buyer for Jet Airways and recover dues for the lenders, while law firm Cyril Amarchand Mangaldas will represent the SBI-led lenders consortium.

The case will come up for hearing before the Mumbai bench of the National Company Law Tribunal (NCLT) shortly, after a petition for insolvency was filed on June 18.

In this connection, it may be recalled that the NCLT had adjourned the hearing of the Jet Airways’ insolvency case to June 20 after nobody appeared on behalf of the airline on June 13, when it was originally scheduled to be heard.

The NCLT has issued notices to Jet Airways and if nobody appears on its behalf on June 20, the NCLT is likely to decide to admit the insolvency pleas ex-parte.

As reported earlier, the NCLT will also hear two separate pleas made by two of Jet Airways’ operational creditors, Shaman Wheels Pvt. Ltd and Gaggar Enterprises Pvt Ltd, shortly.

The Jet Airways pilots’ union National Aviator’s Guild also plans to file an insolvency plea for non-payment of salaries and gratuity soon.

Incidentally, lenders have unpaid dues worth Rs 8,400 crore to recover from Jet Airways, whose total liabilities, including unpaid staff salaries and vendor dues, are nearly Rs 15,000 crore.

In a related development, a Dutch court has already declared the airline bankrupt overseas.

A court in North Holland passed the order ex-parte in response to a plea filed by two European creditors with dues of around Rs 280 crore, but an appeal is yet to be filed on behalf of the grounded airline.