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Seven-member panel to manage day-to-day operations of Jet Airways under resolution plan

Seven-member panel to manage day-to-day operations of Jet Airways under resolution plan

While the consortium and financial creditors will appoint three members each on the committee, an independent insolvency professional will be appointed by the financial creditors.

Jet Airways had suspended operations in April 2019. Jet Airways had suspended operations in April 2019.

A seven-member monitoring committee will carry out the day-to-day operations and management of Jet Airways till the resolution plan proposed by the Jalan Kalrock consortium is completed.

The Mumbai bench of the National Company Law Tribunal (NCLT) had approved the consortium's resolution plan on June 22.

With the approval of NCLT, the corporate insolvency resolution process (CIRP) of the airline has concluded and Ashish Chhawchharia has ceased to be the resolution professional of the company, effective on and from June 25, 2021, Jet Airways said in a regulatory filing to stock exchanges.

As per the terms of the approved resolution plan, a monitoring committee is required to be constituted which will comprise of seven members, it said. The committee will supervise the implementation of the resolution plan.

While the consortium and financial creditors will appoint three members each on the committee, an independent insolvency professional will be appointed by the financial creditors, it added.

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"...terms of appointment and duties of the monitoring committee will be as set out in the resolution plan and the day to day operations and the management of the company shall be carried out by the monitoring committee until the closing date as defined in the resolution plan," the airline said.

As per the filing, the actions in respect of the appointment as well as duties and functions of the committee, and implementation of the resolution plan will be taken in accordance with the resolution plan. The same would be subject to any directions that may be issued by NCLT in this regard.     

On June 25, NCLT published the written order approving Jalan Kalrock consortium's resolution plan. The approval is subject to certain directions. A separate order regarding the directions would be issued later by the tribunal.  

While clearing the resolution plan, NCLT also made it clear that it will not give any direction on the issue of airport slots for the airline, citing that the matter will be handled by the government or the appropriate authority concerned.     

On June 22, Jalan Kalrock consortium said it will decide on the next steps after receiving NCLT's written order and emphasised that it will work with the aviation authorities to see the airline, which suspended operations in April 2019, taking wings again.

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