The deadline for completion of Jet Airways (India) Ltd’s insolvency resolution process, which was earlier extended till 21 August due to the nationwide lockdown to contain the spread of the covid-19 virus, will be extended further due to the pandemic.
However, the resolution professional (RP) entrusted by the lenders of the airline to complete the insolvency process, hasn’t given a fresh deadline yet.
In a letter to the now defunct airline’s employees on Thursday — a day before the completion of the latest deadline for the insolvency process — the lenders-appointed Resolution Professional (RP) for the airline, Ashish Chhawchharia, said that it is difficult to predict the timeline for the completion of the insolvency process due to the ongoing covid-19 pandemic.
“While the CoC (Committee of Creditors) and the RP are taking all necessary steps to expedite the insolvency process, it is difficult to exactly predict when it will be completed,” Chhawchharia said in the letter.
“The complications are multiplied due to the prevalent pandemic situation, but please be assured that the CoC and I are doing everything possible to conclude the process at the earliest,” he added.
A copy of the letter has been reviewed by Mint.
The insolvency process for Jet Airways, which has been grounded since April 2019 due to acute fund crunch, was earlier supposed to be completed by 13 June. This deadline was further extended to 21 August due to the nation-wide lockdown, imposed by the government to contain the spread of the covid-19 pandemic.
As things stand, Jet Airways has received bids from two consortiums. These included bids from a consortium comprising UK-based Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan, and a consortium of Haryana-based Flight Simulation Technique Centre, Mumbai-based Big Charter and Abu Dhabi’s Imperial Capital Investments LLC.
When contacted, Ashish Chhawchharia said that the deadline for the completion of the insolvency process has been extended due to the ongoing covid-19-related restrictions.
Chhawchharia added that the fresh deadline for completion of the process hasn’t been announced due to covid-19 related uncertainties.
News Source: Livemint