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Liquidation process of Jet Airways to begin in near future: Sources

Cash-strapped Jet Airways stopped its operations on April 17 after lenders refused to extend emergency funding to keep the airline afloat.

Liquidation process of Jet Airways to begin in near future: Sources

It seems that the resolution of Jet Airways has reached the end of the road and the liquidation process of the bankrupt airline is set to begin in the near future. Jet Airways stopped its operations on April 17 after lenders refused to extend emergency funding to keep the airline afloat. Jet Airways' lenders tried to sell the airline in April but they failed to find any buyer except UAE-based Etihad Airways, which is a strategic partner to Jet. The talks with Etihad Airways, however, did not take off after it put forth a conditional bid.

Sources told Zee Media that the cold response by buyers has forced the Committee of Creditors (CoC) to liquidate Jet Airways and it is expected that the CoC would pass a proposal in this regard during its next meeting. It is learnt that the CoC has already asked the resolution professionals to prepare of a list of Jet Airways assets which can be liquidated.

On June 20, 2019, the National Company Law Tribunal (NCLT) had admitted Jet Airways for insolvency and at that time NCLT Judge VP Singh had said that the process should be completed within 90 days. In July, 2019, Expressions-of-Interest (EoIs) was invited by the resolution professionals but Synergy Group was the only company which had submitted the EoI.

The liquidation process is expected to help Jet Airways' lenders recover around 5-10% of the total outstanding debt which runs into Rs 30,588 crore, including over Rs 10,220 crore claimed by financial creditors.

It may be recalled that on August 23, the Enforcement Directorate (ED) had raided the residence of Jet Airways founder Naresh Goyal for alleged money laundering and fund diversions. On May 25, Goyal and his wife Anita Goyal were stopped from leaving the country by immigration authorities at Mumbai airport.