NEW DELHI: The committee of creditors (CoC) of Jet Airways on Monday told the Supreme Court that the Jalan-Kalrock resolution plan approved by the National Company Law Tribunal (NCLT) is not working and called for the liquidation of the grounded airline.
Liquidation means shutting down the business and selling off assets to repay lenders. Appearing for the creditors, Additional Solicitor General N Venkataraman said that the successful bidder, Jalan-Karlock consortium, has not infused a rupee so far while the CoC has spent over Rs 400 crore. He argued that if the CoC were to recover any of its dues, Jet Airways needs to be liquidated.
Venkataraman said the consortium keeps filing extension pleas to infuse funds but has not deposited any money yet. Moreover, the Directorate General of Civil Aviation is not inclined to renew the airline’s air operations certificate, which expired in May.
The Supreme Court has scheduled the next hearing in two weeks and has called for a response from the consortium. Jet was grounded in April 2019 and the insolvency process started in June 2019. The NCLT approved a resolution plan submitted by JKC in June 2021 wherein it was agreed that the consortium would infuse funds into the airline.
On May 26, the NCLAT granted the JKC a 97 days extension to pay a guarantee of `150 core to the State Bank of India (SBI). The appellate tribunal extended the timeline for payment obligation as it excluded the time period between November 16, 2022 and March 3, 2023, the duration when it was hearing the petition filed by lenders. Meanwhile, the Resolution Professional (RP) of Go First on Monday invited expressions of interest (EoI) for the grounded airline. The deadline to submit the EoIs is August 9, 2023.