A $10-million interim fund infusion into Jet Airways and appointment of consultants — to value the company’s assets and to decide the eligibility criteria for the bidders — were among the resolutions approved by the Jet Airways’ Committee of Creditors in an e-voting process as per provisions.
The bidding process for Jet Airways is likely to start from Saturday with Ashish Chhawchharia, the Interim Resolution Professional (IRP) appointed for Jet Airways (India) Ltd. by the National Company Law Tribunal, planning to release advertisements inviting Expression of Interest (EoI). A person privy to the development confirmed this.
The window for e-voting under the IBC opened on Thursday and closed on Friday. In a filing with the exchanges, Jet Airways said, “We wish to inform that the e-voting for the First Meeting of Committee of Creditors of Jet Airways (India) Limited concluded at 4 pm IST on July 19, 2019, in accordance with the Regulation 26 of the Insolvency & Bankruptcy Board of India (Insolvency Resolution for Corporate Persons) Regulations, 2016, wherein all the resolutions, including appointment of Interim Resolution Professional Mr. Ashish Chhawchharia as Resolution Professional, have been approved by requisite majority.”
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“Further, resolution to raise interim finance and key terms for the eligibility criteria for prospective resolution applicants have been also approved by the requisite majority of voting share,” it added.
This clears the way for inviting the EoI by setting the terms and conditions.
Currently, only the consortium of Jet Airways employees and U.K. based Adi Partners are serious players in the fray. A few more players are expected to submit bids. Considering the rapid value erosion of the airline following the botched up bank-led resolution plan, the lenders are expected a take a substantial haircut should be the airline finds a buyer.
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As per details released by the IRP, 37 financial creditors have claimed ₹10,231 crore while he had approved claims of 33 financial creditors worth ₹8,462 crore. As many as 2,493 operational creditors have claimed over ₹12,372 crore and these are under verification.
The IRP is working on a rapid speed to get things into normalcy as well as to meet various deadlines. Instructions have been issued to the engineering department to get at least 10 grounded planes in perfect flying worthy conditions. The entire fleet, most of which has been de-registered, has been grounded since April and planes are parked at various airports across India, mostly in Mumbai.
The company’s email service which was temporarily disconnected due to non payment of dues to the service provider has been restored.