RP of Jet Airways wants NCLT to ask lenders for interim financing

(Photo courtesy: Jet Airways)
The resolution professional (RP) of the defunct Jet Airways has sought the National Company Law Tribunal's (NCLT's) intervention to ease the process of acquiring interim financing from the committee of creditors (CoC). The RP asked the tribunal to direct the CoC to release the interim financing that was agreed upon in the first CoC meeting of the airline.

In the first CoC meeting, lenders had considered extending a $10-million (about Rs 70-crore) loan to Jet. Since the funds were not released, the RP is seeking financing for maintenance of the assets of the airline.

On Friday, the RP apprised the NCLT on the status of the expression of interest (EoI) for the airline. So far, the RP has received two EoIs, one from RA Creator, a Russian company, and the other one from Panama-based Avantulo Group.

The RP also apprised the tribunal that an EoI, from Anil Agarwal's Volcan Investments, was withdrawn. However, the final list of resolution applicants, which was supposed to be issued on August 21, has been delayed.

Moreover, the RP informed the tribunal that of the 7,400 employees on the company's payroll, the RP has identified 200 people to work in the asset preservation team of the defunct airline, with all the 200 employees agreeing to terms of the agreement on salary payments.

The second CoC meeting will be held next week wherein the settlement proposal, which the RP and Luckystar, owner of Jet's headquarters, has arrived on, will be presented to the CoC for approval. In the last hearing, the tribunal had asked both the parties to resolve the matter amicably.

Both the parties had said that they have worked out a proposal which will be presented to the CoC in the next meeting. If approved by the CoC, Luckystar will give 30 days to RP to move out of the premises. If no settlement is reached, the tribunal will hear the arguments of both the sides and decide on the matter.

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