Jet creditors seek 90-day extension in insolvency resolution process

The committee of creditors (CoC) of the beleaguered Jet Airways has decided to file an application before the National Company Law Tribunal (NCLT) for extending the corporate insolvency resolution process (CIRP) of the company by 90 days. 

Under the Insolvency and Bankruptcy Code (IBC), the CIRP period can be extended by 90 days from the stipulated 180 days if there is a chance of resolution of the firm. The 180-day timeline of Jet ends on December 16. 

In a filing to the stock exchanges, the company said lenders in the fifth CoC meeting passed resolutions to extend the last day for submission of a resolution plan by the South America-based Synergy Group to December 16 and filed an application in the NCLT to extend the CIRP period. Synergy Group was earlier given time till November 15 to file a resolution plan but it asked for more time to submit bid for the company, as it sought more clarity on airport slots in India and London.

Synergy Group is the only interested entity shortlisted by the Resolution Professional's team to file a plan for the defunct airlines. 

In its last hearing in the NCLT, the tribunal asked Synergy Group to appear before the Bench and wanted to know if the firm was at all serious about reviving the defunct airlines.

The tribunal also made the Ministry of Civil Aviation and the Directorate General of Civil Aviation a party in the matter and sought their response on the availability of slots.