27-10-2020 Update from NCLT/IBC Cases by INSOLVENCY PROFESSIONAL RAJNISH BANSAL

Grounded Jet Airways is looking to take-off once again. The airline which has been grounded for over a year now is reportedly all set to submit its revival plan to NCLT this week. ET Now on Monday access the revival plan which states that the company will propose upfront payment of Rs 487 crore to creditors in the initial stage.

The plan includes payment of Rs 500 crore in a deferred manner post restarting. The revival plan further stated that Het will sell current A330 and B737 and will forward the payment to creditors. The airline will be focusing on cargo and international operations. Sources told the channel that the operating plan will be of international, cargo and domestic operations. 

Initially, the airline is planning to start with six to seven aircraft on domestic routes and it is looking to restart international service within six months of starting operations. Sources also told the channel that the company will approach Ministry of Civil Aviation for restoring slots by Jet Airways. As per the plan, Jet is looking to scale up to 100 aircraft in 5 years operation. 

It is worth mentioning that on October 17th, Jet Airways informed exchanges that Committee of creditors (CoC) had approved the resolution plan submitted by Murari Jalan & Florian Fritsch, the process got concluded via E-voting and got majority approval.

In April last year, Jet was grounded due to fund crunch and State Bank of India (SBI) took the airline to NCLT in June 2019. ET NOW learns the Kalrock consortium bid is said to offer a payout of Rs 850 cr to the lenders, led by State Bank of India.

Jet Airways is currently facing claims of Rs 40,000 cr in NCLT out of which claims of about Rs 15,000 Cr has been admitted by the resolution professional. RP will approach the NCLT as early as November and then the company will likely apply to the Ministry of Civil Aviation and Corporate Affairs Ministry for their approvals

“State Bank of India played an anchor role in Jet’s revival…plan is to bring the Jet airline back to its glory", said Ashish Chhawchharia, Resolution Professional of Jet Airways in an exclusive conversation with ET NOW earlier this month.

?? Lenders of troubled Dewan Housing Finance Corporation (DHFL) will have to wait longer as the National Company Law Tribunal (NCLT) has allowed 90 days extension for the resolution process of the company till January 5, 2021.

The Centre had imposed the lockdown from March 25 till May 31, 2020. However, in Maharashtra, the lockdown was extended until July 31, 2020, and therefore a period of 129 days should be excluded from the CIRP process, the administrator of DHFL had argued.

The Mumbai bench of the National Company Law Tribunal (NCLT) has allowed the extension for the resolution process of the company, and has also allowed the exclusion of the time of lockdown from the CIRP process.

DHFL is the first financial services company which has been sent to the NCLT under the insolvency and bankruptcy code (IBC). Last year in November, the RBI had superseded its board and placed it under a three-member advisory committee comprising Rajiv Lall, executive chairman of IDFC First Bank; NS Kannan, MD of ICICI Prudential Life, and NS Venkatesh, CEO of the Association of Mutual Funds in India.

The company owed over Rs 83,800 crore to the banks, the National Housing Board, mutual funds and bondholders. Out of this, about Rs 74,000 crore was secured, while over Rs 9,800 crore was unsecured.

Recently, it attracted bids from many bidders including Adani Properties, Piramal Enterprises and Oaktree Capital which offered Rs 28,000 crore.

?? You may send me any queries related to: [email protected].

IP CA. RAJNISH BANSAL

B.Com, FCA, DISA, CISA, I.P.

INSOLVENCY PROFESSIONAL

FORENSIC AUDITOR &

SYSTEM AUDITOR

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New Delhi- 110085

Date – 27/10/2020