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NCLAT Asks Jet Lenders If They Would Cooperate With Dutch Court Administrator
Jet Airways is facing insolvency proceedings in the Netherlands as well, where it was declared bankrupt after failing to pay two European creditors.
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The National Company Law Appellate Tribunal (NCLAT) on Wednesday asked lenders of Jet Airways whether they would cooperate with the Dutch court administrator who is also pursuing insolvency proceedings against the debt-ridden carrier.
A three-member NCLAT bench headed by Chairman Justice S J Mukhopadhyay asked the Committee of Creditors (CoC) of Jet Airways to file an affidavit within a week in this regard. The appellate tribunal has also asked the CoC to inform whether they are ready to pay fees and bear costs incurred by the Dutch administrator.
Jet Airways is facing insolvency proceedings in the Netherlands as well, where it was declared bankrupt after failing to pay two European creditors. Subsequently, a bankruptcy administrator was appointed by the Dutch court.
The NCLAT has asked to list the matter on September 4 for further hearing. The appellate tribunal's direction came while hearing a petition filed by the Dutch court administrator against the order of the Mumbai bench of the National Company Law Tribunal (NCLT), which had declared overseas bankruptcy proceedings null and void in the Jet Airways insolvency case.
The NCLAT on July 12 had stayed the orders of NCLT on the plea filed by the Dutch court administrator and agreed to hear it. The appellate tribunal had said that it will clarify the law on action to be taken when there are two insolvency petitions filed against the same company in two different countries.
The Dutch administrator has also agreed before the NCLAT not to sell the confiscated assets of the debt-ridden Jet Airways. In April, H Esser Finance Company and Wallenborn Transport had filed a petition citing unpaid claims worth around Rs 280 crore.
Following this, a trustee in charge was appointed by the Dutch court and it had approached its Indian counterpart for access to the financials as well as assets of the airline. One of the Jet Airways aircraft, parked in the Schiphol Airport in Amsterdam, has already been seized.
The NCLT Mumbai has also admitted an insolvency plea against Jet Airways by its lead lender State Bank of India.
The airline is grounded since April 18. The grounded airline owes more than Rs 8,500 crore to lenders. It also has a large debt by way of accumulated losses to the tune of Rs 13,000 crore, vendor dues of over Rs 10,000 crore and salary dues of over Rs 3,000 crore.