Jet Airways interim resolution professional gets 16,643 financial claims worth Rs 24,887 crorehttps://indianexpress.com/article/business/aviation/insolvency-process-jet-airways-interim-resolution-professional-gets-16643-financial-claims-worth-rs-24887-crore-5836950/

Jet Airways interim resolution professional gets 16,643 financial claims worth Rs 24,887 crore

Operational creditors make 2,493 claims worth Rs 12,372 crore, while claims of 33 banks worth Rs 8,462 crore admitted.

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Out of Rs 24,887 crore claims, it has so far admitted only claims of 33 banks worth Rs 8,462 crore. The RP has rejected claims worth Rs 1308 crore so far.

The interim Resolution Professional of grounded Jet Airways has received 16,643 financial claims from banks, operational creditors and employees amounting to Rs 24,887 crore.

According to a statement by Ashish Chhawchharia, Interim Resolution Professional (RP) for Jet Airways, which is undergoing the bankruptcy proceedings under the Inselvency and Bankruptcy Code (IBC), 37 banks have made claims worth Rs 10,231 crore. However, the RP notice said Rs 337 crore claims of banks were rejected and another Rs 1431 crore worth of claims are under verification. Out of Rs 24,887 crore claims, it has so far admitted only claims of 33 banks worth Rs 8,462 crore. The RP has rejected claims worth Rs 1308 crore so far.

The Jet Airways RP said operational creditors have made 2,493 claims worth Rs 12,372 crore. However, this is under verification as per the RP’s notice. RP has also received 2,027 claims worth Rs 443 crore from workmen and employees and another 11,965 claims worth Rs 735 crore from authorised representatives of workmen and employees

Besides, out of 121 other creditors who submitted claims worth Rs 1105 crore, RP rejected claims worth Rs 1,043 crore. “The amount admitted in few cases may undergo changes, communication has been sent to the creditors as per regulation 10 of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, calling for additional documents/clarifications,” the statement said. “For aircraft lessors, we are in process of confirming if any of these are related parties under the provision of IBC, 2016,” it said.

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On June 18, two months after Jet Airways shut down its operations, banks decided to refer the airline to the bankruptcy court —National Company Law Tribunal (NCLT) — for resolution under the Insolvency and Bankruptcy code after the bidding process failed to identify a suitable white knight. The fate of the airline, which shut down operations on April 17, 2019 after it ran out of cash, will be decided as per the June 7 circular of the Reserve Bank of India (RBI). However, sources said the creditors are unlikely to get the full amount as the airline doesn’t have much tangible assets left.

The airline which defaulted on repayments, was looking for an investor to pump in funds but failed to get any funding source. Etihad Airways, which holds around 24 per cent stake in the airline, refused to bring in funds. On March 25, as part of the bailout plan worked out by the lenders, Naresh Goyal and his wife Anita Goyal stepped down from the board. The bid from Etihad Airways disappointed the lenders with the Abu Dhabi-based airline putting in stiff conditions including write-off of debt, bringing in another investor and exemption from open offer.