Jet Airways admitted for bankruptcy by NCLT: Highlights
The news has been mostly bad for Jet Airways now for months. Today was different. The airlines share price jumped as much as 150% today in intra day trade, to cheer up its investors.
The news has been mostly bad for Jet Airways now for months. Today was different. The airline's share price jumped as much as 150% today in intra day trade, to cheer up its investors. However, there were other things happening surrounding this airline founded by Naresh Goyal. Notably, Jet Airways stopped operations on April 17. Here are highlights:
1. It was also revealed that The National Company Law Tribunal (NCLT) admitted the insolvency petition
2. The bankruptcy petition was filed by the lenders' consortium led by State Bank of India against Jet Airways.
3. NCLT then appointed Ashish Chhauchharia of Grant Thornton as the resolution professional.
4. The tribunal comprising VP Singh and Ravikumar Duraisamy directed the RP to try and finish the resolution process in three months even though the law allows six months, saying "the matter is of national importance."
5. SBI has made a claim of Rs 967 crore and said it had given Rs 505 crore in working capital loans, and an overdraft facility of Rs 462 crore to the company.
6. Tribunal rejected the plea by the Netherlands based vendors for filing an intervention application, saying the Dutch district court had no jurisdiction to order bankruptcy of Jet Airways.
7. The tribunal also rejected the bankruptcy pleas filed by two operational creditors of Jet--Shaman Wheels and Gaggar Enterprises. These companies claim Rs 8.74 crore, and Rs 53 lakh respectively from the airline. However the petitioners are free to approach the RP.
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