New Delhi, Sep 20 (IANS) In a major development in the Jet Airways insolvency matter, the resolution professional (RP) of Jet Airways and the Dutch court administrator have agreed to cooperate in the insolvency proceedings of the airline.
The RP and the Dutch administrator have agreed on the terms and conditions for cooperation in the ongoing process, the counsel appearing for both sides informed the National Company Law Apellate Tribunal (NCLAT).
The counsel said that the Committee of Creditors (CoC) had agreed on all conditions except for one, that the Dutch administrator would be present in its meetings.
NCLAT Chairman S.J. Mukhopadhaya, however, observed that it is the right of the Dutch administrator to attend the CoC meetings and both sides should go together.
The appellate tribunal also noted that there should be transparency in the insolvency resolution process.
The debt-ridden Jet Airways is facing insolvency proceedings in The Netherlands too. It was declared bankrupt there after it had failed to pay two European creditors. The Dutch court subsequently appointed a bankruptcy administrator.
The three-member NCLAT bench headed by Chairman Mukhopadhaya asked both parties to file their terms and conditions by Monday and listed the matter for hearing on September 24.
In the previous hearing in August, the NCLAT had asked the CoC of Jet Airways to file an affidavit stating whether it is ready to cooperate with the Dutch bankruptcy administrator.
The Mumbai bench of National Company Law Tribunal (NCLT) had rejected the Dutch administrator’s plea to recognise their proceedings, following which the administrator approached the NCLAT.
The now-grounded airline owes over Rs 8,000 crore to its lenders. Besides the lenders, the airline is estimated to have a total liability of about Rs 25,000 crore which includes dues of operational creditors.
Jet Airways on April 17 announced temporary suspension of all flight services as it failed to secure interim funding from lenders to maintain even the bare minimum operations.