Jet Airways COC extends deadline for submitting resolution to March 9

The Jet Airways'Committee of Creditors on Tuesday extended the date for submitting a resolution plan to March 9 after Russia-based Far East Development Fund submitted an expression of interest (EoI). The meeting was held to discuss the way forward for the crisis-hit airline as the deadline for bid submissions ended on Monday. 

The meeting took place in the backdrop of two suitors showing interest in the grounded airline but failing to submit a resolution plan for bid submissions on Monday. Prudent ARC, one of the potential suitors had sought an additional four weeks’ time to submit a revival proposal for the airline, Business Standard reported, while the South America-based Synergy Group is yet to submit its plan. 

Prudent ARC is in talks with investors and has submitted letters of support from its investors. The resolution professional of Jet is seeking more clarity on the same to ascertain that investors are not disqualified under rules from participating in the airline’s revival. Prudent ARC had earlier signed a non-disclosure agreement with the resolution professional of Jet.

In December last year, Synergy Group had sought more time to take a decision on investing in the grounded airline. In December 2019, the UK-based Hinduja Group yet again expressed interest to buy Jet Airways.

Jet Airways was admitted for insolvency on June 20 last year, after lenders failed to sell the grounded airline. Creditors' claims for the airline are of Rs 36,090 crore, of which Rs 14,640 crore was admitted as on October 20.

Jet Airways (Illustration: Ajay Mohanty)

The airline has 12 aircraft, including three Boeing 737s, six Boeing 777s, and three Airbus A330s (including one leased to Air Serbia). Of them, the three Boeing 737s are fully-owned by the airline. There is a pending loan of around Rs 250 crore on the remaining planes. 

Meanwhile, to settle liquidation in the Netherlands, the airline is selling one of its six Boeing 777 aircraft to KLM to settle pending aircraft loans and meet insolvency resolution expenses. 

As reported by Business Standard, the deal value has not been disclosed, but sources said could fetch the airline around $23 million. As a part of the agreement, Dutch airline KLM will purchase a Jet Airways Boeing 777 aircraft, which was seized in Amsterdam last April, along with the grounded airline's marketing data and catering equipment.