Jet Airways insolvency: Creditors say Jalan-Fritsch resolution plan unviable, unworkable

economictimes.indiatimes.com:

Jet Airways creditors on Monday told the Supreme Court that the resolution plan of the consortium of Jalan-Fritsch was unviable and unworkable. The ASG said that not even a single penny has been paid to lenders or infused in the debt-laden airline. On the contrary, the lenders have infused public money of around Rs 400 cr including airport dues.

The SC has issued notice but did not put a stay on the resolution plan. The resolution applicant argued liquidation is not the right recourse under IBC.Jet Airways stopped flying in April 2019 and later the consortium emerged as the winning bidder under the insolvency resolution process. However, ownership transfer has been hanging fire amid continuing differences between the lenders and the consortium.

Currently, the affairs of the grounded airline is being managed by the Monitoring Committee (MC) of lenders. The consortium was to infuse Rs 175 crore, first tranche of money within 180 days by May 15, 2023. The consortium approached NCLAT fearing encashment of its bank guarantee and said as no corresponding steps are taken by lenders, first tranche of money could not be infused.

In its 16-page strongly-worded order, the National Company Law Appellate Tribunal (NCLAT) emphasised that the parties should work on early revival of the carrier. Slamming the MC, a two-member NCLAT bench said it has to act as a facilitator for the implementation of the resolution plan. Instead of that, MC is finding fault and taking steps " which does not facilitate the implementation, rather delay the implementation", the bench observed.