Bids invited for India's grounded airline Jet Airways
The last date for submitting the expression of interest is August 3 and the final list of prospective applicants will be issued on August 14 subsequent to which they will have to submit resolution plans by September 5, the notice issued in several newspapers by Ashish Chhawchharia, the resolution professional, said on Saturday.
So far, India's National Company Law Tribunal appointed resolution professional has received 16,643 claims worth 3.6 billion U.S. dollars from financial and operational creditors of the airline of which only 33 claims worth 1.23 billion U.S. dollars belonging to financial creditors (banks) have been admitted while the rest are being verified.
Details about the expression of interest have so far not been uploaded on the website, but a report by Livemint newspaper quoting an unnamed official said that a minimum net worth of 145 million U.S. dollars has been prescribed for the bidders to keep frivolous bidders away from the resolution process.
Meanwhile, the Committee of Creditors of the beleaguered airline on Friday approved an interim funding of 10 million U.S. dollars to run the corporate insolvency resolution process including hiring contractual people to verify claims made by different creditors of the airline, said the newspaper report.
Since the Indian Insolvency and Bankruptcy law was enacted in 2016, around 12,000 cases have been filed of which around 4,500 cases have been resolved amounting to a settlement amount of 29 billion U.S. dollars while 1,500 cases have been admitted and 6,000 cases are waiting in queue.
Earlier this week, the Indian government cleared seven amendments to the insolvency law that seeks to put in place a 330-day deadline instead of the previous 270-day for corporate resolution process, including litigation and other judicial processes, as well as make resolution plan binding on all stakeholders. If the resolution does not take place within the stipulated period, the case goes into liquidation.
Commencing its operations in 1995, Jet Airways flew its last flight on April 17 and since then had grounded all its operations due to acute shortage of funds, leaving several thousands unemployed. ■