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Jet Airways crisis: Grounded airline invites claims from creditors by July 4

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Jet Airways, which was admitted to the National Company Law Tribunal (NCLT) previous week for bankruptcy, has invited claims from all the creditors, news agency PTI reported. The grounded airline became the first domestic airliner to go into bankruptcy after the Mumbai bench of the NCLT admitted an insolvency petition filed by State Bank of India (SBI) on behalf of 26 lenders on June 20. In total, the cash-starved airline owes Rs 8,500 crore to the consortium of 26 banks. The airline owes more than Rs 13,000 crore to the several vendors and nearly 23,000 employees.

“The creditors of Jet Airways are hereby called upon to submit their claims with proof on or before July 4, to the interim resolution professional. Financial creditors shall submit their claims with proof by electronic means only,” PTI reported citing the resolution professional Ashish Chhawchharia of Grant Thornton in a public notice.

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After insolvency proceedings begin, the senior management of the company are bound to give access to the firm s documents as sought by the resolution professional. Even the financial institutions that maintain the accounts of the firm are also bound to be provided to the professional under the rule. The letter adds the entire purpose of the Corporate Insolvency Resolution Process is to look into the interests of all stakeholders, including employees, workers and contractual staff.

One of the largest airlines of a time, Jet Airways began its operations some 25 years back by Naresh Goyal. On April 17, the airline halted its operations after it ran out of cash and the unpaid lessors took away most of its 100-odd operational aircraft.

Shares of Jet Airways closed the intra-day trade at Rs 72.55, down 0.050, or 0.069 per cent NSE.