NCLT okays extension of 90 days for Jet insolvency resolution

Jet Airways was admitted for insolvency on June 20, after lenders failed to sell the grounded airline. (File Photo)

The National Company Law Tribunal (NCLT) on Friday allowed Ashish Chhawchharia, resolution professional (RP) for Jet Airways, to extend the corporate insolvency resolution process (CIRP) of the grounded airline by 90 days. Earlier this month, the RP had sought an extension for the resolution period after the Colombian Synergy Group failed to submit a business plan for the revival of Jet Airways by December 16.

Jet Airways was admitted for insolvency on June 20, after lenders failed to sell the grounded airline. The 180-day deadline as stipulated under the Insolvency and Bankruptcy Act, 2016, for the resolution of the airline ended on December 16.

Meanwhile, earlier this week, two parties besides Synergy Group expressed initial interest in Jet Airways. FE reported that lenders had in-principle agreed to call for fresh bids for the beleaguered airline. The final decision will be taken by Saturday.

Story continues below this ad

On Thursday, the two-member Bench of the Mumbai NCLT had asked the committee of creditors (CoC) to decide within three weeks on calling for fresh expressions-of-interest for Jet Airways.

On Thursday, the NCLT met Synergy Group Corp chief operating officer Michael Welch and told representatives of the Synergy Group to “take a decision early” on Jet Airways. fe