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First CoC meet for Jet Airways insolvency next week

Jet Airways halted operations on April 17 after lenders refused to provide emergency funding.

By Anwesha Ganguly

The first meeting of the committee of creditors (CoC) regarding the insolvency proceedings of Jet Airways is likely to take place early next week, sources told FE.

The National Company Law Tribunal (NCLT) had on June 20 passed an order to initiate insolvency proceedings against the grounded airline following a plea filed by State Bank of India.

The first fortnightly report by the court-appointed interim resolution professional (RP) was submitted to NCLT on July 5.

The RP's team will also publish the total claims accumulated against Jet this week, a person aware of the proceedings said. Creditors had to file their claims by July 4, but employees have been given time till July 24.

The CoC will likely include representatives from SBI, Punjab National Bank, IDBI Bank, ICICI Bank and Indian Overseas Bank, among others.

SBI dragged the airline to the insolvency court after lenders failed to find a buyer for a majority shareholding in the airline.

Abu Dhabi-based Etihad Airways, Jet's strategic partner, was the only serious party to show interest subject to multiple conditions.

The CoC will meet to discuss multiple issues, including the voting rights of each party and a timeline for inviting expressions of interest (EoIs) for the resolution of Jet.

The Hinduja group and Etihad Airways have held multiple discussions on putting in a formal bid for the airline since the initiation of insolvency proceedings.

Jet Airways halted operations on April 17 after lenders refused to provide emergency funding. The airline has dues of around Rs 8,000 crore with financial creditors alone. In its insolvency plea, SBI stated that the airline has outstanding working capital worth over Rs 460 crore with the bank.

While passing the order, the Bench had asked that the matter be resolved within 90 days as Jet Airways insolvency is a matter of "national importance". The 90-day deadline was left out of the official order.