NCLT warns Jet Airways CoC of contempt proceedings | Deccan Herald

The NCLT on Wednesday warned Jet Airways CoC of contempt proceedings if they do not release interim funds to the resolution professional by January 20 for completion of insolvency proceedings. (Representative Image/Photo by AFP)

The NCLT on Wednesday warned Jet Airways CoC of contempt proceedings if they do not release interim funds to the resolution professional by January 20 for completion of insolvency proceedings.

“We again reiterate and instruct the Committee of Creditors (CoC) to release the interim amount as required by the RP of the grounded airline, so that the corporate insolvency resolution process (CIRP) is completed and the assets of Jet are not devalued,” Mumbai-bench of NCLT in its order said.

Further, the bench comprising Bhaskara Pantula Mohan and Rajesh Sharma directed the CoC to at least pay the amount by January 20, or the tribunal will initiate contempt proceedings against the defaulting members.

The tribunal directed the CoC members, who have not honoured the order of the court, to remain present on February 19 – the next date of hearing.

The National Company Law Tribunal (NCLT) also directed Indian Overseas Bank, which filed applications at the tribunal for exemption from payment as they are under Prompt Corrective Action (PCA) restriction to approach the government authorities concerned in this regard.

This direction came after the resolution professional pointed out that it is under tremendous pressure as many CoC members, in spite of the tribunal’s earlier order, have not released funds.

The lenders had in-principle sanctioned Rs 63 crore to the RP. Lead banker SBI and two other banks had reportedly already disbursed their portion of the interim amount.

However, the bench exempted IDBI Bank from releasing these funds as it is under the Reserve Bank of India’s PCA framework. The tribunal has also said that Indian Overseas Bank must seek similar exemption.

Meanwhile, the RP submitted its progress report saying that under the fresh expression of interest (EoIs), which was decided on December 17, has received interest from two parties.

The CoC has decided January 15 as the last date of submission of EoIs and February 17 as the last date of submission of resolution plans, he said.

South America’s Synergy Group has filed its documents under this fresh EoI, he said, adding the other one is a domestic company, but not in the airline business.

via NCLT warns Jet Airways CoC of contempt proceedings | Deccan Herald

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s