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Jet Airways creditors' claims shoot up to over Rs 30,000 crore

This comes after Eithad Airways, which owns 24 per cent stake in Jet, did not submit Expression of Interest (EOIs) for the stake sale in the bankrupt airline

twitter-logo BusinessToday.In   New Delhi     Last Updated: August 26, 2019  | 09:46 IST
Jet Airways creditors' claims shoot up to over Rs 30,000 crore
Resolution Professional Ashish Chhawcharia has admitted Rs 12,555 crore worth of claims and rejected claims worth over Rs 11,996 crore.

All hopes seems to have diminished for the revival of Jet Airways as creditors' claims have now shot up to Rs 30, 558 crore from Rs 24, 887 crore. This comes after Eithad Airways, which owns 24 per cent stake in Jet, did not submit Expression of Interest (EOIs) for the stake sale in the bankrupt airline. Jet Airways has received only two EOIs -- one from Panama-based Avantulo Group and the other from Russian fund Treasury RA Creator. Anil Agarwal-led Volcan Investments, which showed an intent to invest in the beleaguered airline, had withdrawn its support in less than 24 hours.

As per earlier claims, Jet Airways had liabilities of over Rs 26,000 crore. However, now its total liabilities have shot up to Rs 30, 558 crore, reported Business Standard. Of the total claims, Resolution Professional Ashish Chhawcharia has admitted Rs 12,555 crore worth of claims and rejected claims worth over Rs 11,996 crore, the report added. These include Rs 10,224 crore (with interest) worth of lenders' dues; Rs 17,922 crore of operational creditors (excluding employees); Rs 545 crore of employees and workmen; Rs 789 crore of representatives of workmen and employees; and Rs 1,108 crore of other creditors.

In his July estimates, the RP had said it received 16,643 claims worth Rs 24,887 crore, including Rs 8,462 crore by financial creditors, against the company. Jet workers and employees had submitted claims worth Rs 443 crore, of which over Rs 237 crore of worth claims had been accepted by by the RP. The NCLT had told the RP to discuss the matter with the Committee of Creditors so the interim funding could be arranged to pay off salaries to the employees.

Jet still has close to 7, 500 employees on its pay rolls. Prior to its grounding, it had employees base of nearly 14,000. After 25 years of flying, Jet Airways was grounded on April 17, leaving a mountain of debt in unpaid dues to the employees, vendors and the lenders. The list of financial creditors, whose claims have been admitted, include 14 domestic banks and financial institutions, 12 foreign banks, and eight lessors.

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