Jet Airways insolvency: Airline invites claims from creditors by July 4

The airline owes over Rs 8,500 crore to a consortium of 26 banks led by State Bank

Press Trust of India  |  Mumbai 

The resolution professional for Jet Airways, which was admitted to the NCLT last week for bankruptcy, has invited claims from all creditors to the grounded

The owes over Rs 8,500 crore to a consortium of 26 banks led by State Bank, and over Rs 13,000 crore to the tens of hundreds of vendors and around 23,000-odd employees.

"The creditors of 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 of said in a public notice.

All other creditors shall submit their claims with proof in person, by post or by electronic means, it added.

The lenders, who had been owning the since March 25 with 51 percent stake, had on June 17 decided to take the airline, which stopped flying on April 17, to the NCLT as they could not find a buyer.

Even the only preliminary bid from the Etihad-Hinduja consortium reportedly wanted the banks to take 90-95 percent haircut and also exemptions from open offer norms, which would not have been possible for the lenders to commit.

On June 20, the admitted the insolvency petition filed by of India against the airline.

On that day, the tribunal comprising had given a verbal direction to the RP to try and finish the resolution process in three months even though the law allows six months, as "the matter is of national importance.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Mon, June 24 2019. 20:52 IST