For Jet Airways employees, bankers show sympathy, but no money

Despite NCLTs sympathetic view towards grounded Jet Airways staff, there is bad news for its employees. The Committee of Creditors, which met on Thursday, could not approve the funding for payment of dues to employees. Bankers who attended the meeting said, "We have sympathetic view towards the Jet Airways staff but express our inability to fund at this point of time". Resolution professional (RP) had sought interim capital to pay one month salary to Jet Airways.  

Jet Airways employees have claimed total dues of Rs 443 Cr. In the intervention application at NCLT Mumbai, NCLT had directed the RP to consider the request. NCLT bench had pointed out that “for the survival of the Jet Airways employees and their families, it is important to at least transfer one month of salary”.

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Committee of Creditors also discussed about the evaluation criterion for potential bidders. Broadly it will be based on financial strength, bidders experience and bid amount. Timeline to bid for EoI of Jet Airways ends on August 3.

As per people aware of the development the resolution professional Ashish Chawcharia raised the issue of disbursal of interim capital for day to day affairs, the Committee of Creditors had approved the amount but the amount is yet to be disbursed.

Banks under the leadership of SBI had filed petition in NCLT Mumbai  in June after attempts to find buyers outside IBC failed. On the grounds of national importance NCLT allowed the bankers petition and directed the RP to try to finish the process in 3 months.

Jet Airways was facing turbulence since November last year and later crisis deepened, finally on 17th April this year management decided to suspend the operations. Later bankers tried to find strategic buyers for the airline but not a single suitable bid was received.

The promoter Naresh Goyal has been restrained from going abroad and SFIO and ED are carrying out a thorough investigation of the airline.