The IRP has also called for expressions of interest (EoIs) for the airline under the IBC and the last date for interested parties to submit their EoIs is August 3.

Jet Airways lenders approve 10 million interim funding for insolvency process
Money Jet Crisis Saturday, July 20, 2019 - 10:50

An interim funding to the tune of $10 million (approx. Rs 69 crore) has been approved for the now shuttered Jet Airways. The approval has come from the Committee of Creditors led by the largest lender to the airline, State Bank of India. The funds will be used towards the insolvency resolution process, which is currently underway. One of the purposes identified was to hire people on contract to verify the claims by creditors to Jet Airways.

Giving out the figures, the interim resolution professional (IRP) appointed has received claims worth Rs 24,887 crore from different creditors. Of this, Rs 10,231 crore is the amount the financial creditors have claimed while, Rs 12,372 crore is the amount demanded by a total of 2,400 operational creditors. There are salary and other dues to employees pending as well. So far, only an amount of Rs 8462.79 crore has been admitted as genuine claim from the financial creditors. Claims worth Rs 1,380.82 crore have been rejected also.

The IRP has also called for expressions of interest (EoIs) under the IBC, advertisements of which have been published. The last date for interested parties to submit their EoIs is August 3. Resolution plans will be called for on August 6, and the last date to submit plans will be September 5.

The Jet Airways case is currently with the National Company Law Tribunal for insolvency resolution under the Insolvency and Bankruptcy Code enacted in recent years. The lenders led by State Bank of India tried to find a buyer for the airline even before it took the decision to close down its operations in April. The effort to find a buyer is still on and the Committee of Creditors has asked for expressions of interest. There has been some interest evinced by international carriers like Etihad Airways.

The next hearing at the NCLT on the Jet Airways case is fixed for July 23, when the RP will present a report.

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