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Jet Airways resolution professional invites creditors' claims by July 4

The financial creditors have been asked to submit their claims via electronic means only, whereas the remaining creditors can do the same in person, by post or by electronic means, on or before July 4

twitter-logo BusinessToday.In        Last Updated: June 24, 2019  | 21:17 IST
Jet Airways resolution professional invites creditors' claims by July 4
Jet Airways owes over Rs 8,500 crore to lenders, and over Rs 13,000 crore to vendors and employees.

The resolution professional for Jet Airways has invited claims from all creditors of the grounded airline. The public notice in this regard has asked creditors to submit their claims with proof to the interim resolution professional on or before July 4.

"The creditors of Jet Airways are hereby called upon to submit their claims with proof on or before July 4, to the interim resolution professional. Financial creditors shall submit their claims with proof by electronic means only," resolution professional Ashish Chhawchharia of Grant Thornton said in a public notice.

The notice has asked the remaining creditors to submit their claims with proof in person, by post or via electronic means on or before the stipulated date. Jet Airways owns over Rs 8,500 crore to a SBI-led consortium of banks. The debt-laden airline also owes over Rs 13,000 crore to hundreds of vendors and  16,000 employees in pending dues and salaries.

ALSO READ:Jet Airways shares surge 10% as insolvency proceedings begin

The consortium of banks, which owned Jet Airways since March this year, failed to find a buyer for the airline. Consequently, the lenders took Jet to the NCLT on June 17 for resolution of their dues under the IBC framework. Chhawchharia was named the resolution professional in the matter.

The NCLT has ordered a resolution within three months, failing which the airline could be headed for liquidation. The tribunal also asked the IRP to submit a status report on the resolution process every fortnight. The first status report is to be submitted on July 5, 2019.

On June 20, Chhawchharia wrote to the employees of Jet Airways, stating that the insolvency process has been started under the Insolvency and Bankruptcy Code (IBC). The letter said that the IRP will take over the company management under Section 17 of the IBC and exercise the power of the company board, which has been suspended.

ALSO READ:Jet Airways insolvency process: Airline employees receive 1st letter from resolution professional

Meanwhile, shares of Jet Airways continued gaining streak for the third straight session on Monday, rallying over 10 per cent in early trade on the Bombay Stock Exchange, after the NCLT admitted the cash-strapped airline for insolvency proceedings.

(Edited by Vivek Punj with PTI inputs)

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