Jet Airways: Insolvency resolution process deadline extended till Aug 21

At a time when fresh bids have been invited for the grounded Jet Airways, the deadline for completion of its insolvency resolution process has been extended till August 21 due to the lockdown. The full service carrier, which shuttered operations in March 2019, is under Corporate Insolvency Resolution Process (CIRP) and the time period given for its completion was to end on June 13.

According to a regulatory filing, 69 days of lockdown period from March 24 to May 31 would be excluded for computing the CIRP deadline. The nationwide lockdown to curb spreading of coronavirus infections was announced on March 24 and has been extended thrice. It is now to end on May 31.

"Therefore, the revised timeline for completion of the CIRP of Jet is now August 21, 2020, subject to any further extension of the lockdown by the state government of Maharashtra or the central government, as the case may be," the filing submitted to the stock exchanges on Friday said. As per the filing, Maharashtra government imposed a lockdown owing to the pandemic with effect from March 24, and the airline's registered office is in Mumbai.

In March, the National Company Law Appellate Tribunal (NCLAT) said lockdown period ordered by the Centre and state governments, including the period as may be extended either in whole or part of the country, where the registered office of the corporate debtor may be located, would be excluded from being counted under the CIRP. This is applicable to cases where CIRP has been initiated and pending before any bench of the National Company Law Tribunal or in appeal before the NCLAT, the filing said quoting the tribunal.

Ashish Chhawchharia, the insolvency resolution professional managing the affairs of Jet Airways, has called for fresh Expressions of Interest (EoIs) for the airline and the EoI submission deadline is May 28. Resolution plans have to be submitted by July 11. The airline's Committee of Creditors (CoC) authorized inviting fresh bids.

"This has been authorized in view of the prevailing circumstances arising on account of the COVID-19 pandemic, and with the objective to maximize the chances of a successful resolution of Jet for the benefit of all stakeholders," the filing said. It is the fourth time that EoIs have been invited for the airline.

Earlier this month, Jet Airways' proposed sale of its business in the Netherlands to KLM was scrapped as the European country's airport slot coordination organisation, ACNL, rejected the deal. Shares of Jet Airways rose nearly five per cent to close at Rs 21.30 apiece on BSE on Friday.

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