Jet Airways disaster: Lenders’ consortium picks Grant Thornton as decision skilled for cash-strapped airline

After the consortium of 26 bankers led by State Bank of India took Jet Airways to the National Company Law Tribunal (NCLT) to get well their dues, the lenders reportedly picked Ashish Chhawchharia of Grant Thornton India because the decision skilled (RP) for the airline’s chapter proceedings, mentioned media reviews.

The bankers to the now-grounded airline on Tuesday moved the NCLT to get well their dues of over Rs 8,500 crore. The tribunal will hear the matter on Wednesday.

Chhawchharia is heading the restructuring practice for Grant Thornton in India, in accordance with Moneycontrol. Law agency Cyril Amarchand Mangaldas is the authorized advisor to the SBI-led consortium for the Insolvency and Bankruptcy Code (IBC) proceedings, the report mentioned quoting sources.

Chhawchharia is an Insolvency Professional registered with the Insolvency and Bankruptcy Board of India (IBBI), in accordance with a report in Mint.

Representational picture. Reuters

“Grant Thornton will assist the RP in finding a prospective buyer for Jet Airways and recover the outstanding for the lenders,” the report mentioned, quoting an individual within the know of the matter.

Jet Airways, began over 25 years in the past by airline-ticketing-agent-turned-entrepreneur Naresh Goyal, stopped flying on 17 April this yr after it ran out of money and the unpaid lessors took away most of its 100-odd operational airplanes.

The lenders have been making an attempt to promote the airline as a going concern because the previous 5 months however failed resulting from many a cause.

Apart from banks, the airline additionally owes over Rs 10,000 crore to its a whole lot of distributors, primarily plane lessors and over Rs 3,000 crore to round 23,000 workers who’ve not been paid since March.

The airline has been having detrimental net-worth for lengthy and has run a lack of over Rs 13,000 crore prior to now few years. Thus it has over Rs 36,500 crore of dues and being a companies firm negligible belongings to get well.

Also, most of its home airport slots have been given away to different airways by the federal government and so are some of its slots at some key worldwide airports.

On the airplane asset facet, Jet Airways had solely 16 on its ebook that are valued round Rs 5,000 crore as per some media reviews, as the remainder of its 123 fleet had been on lease and most of them have been de-registered or taken away by the overseas lessors already.

On Tuesday, Jet Airways’ shares confronted massive drubbing and tumbled almost 41 % after the SBI-led consortium of lenders determined to ship the grounded airline to the NCLT.

On Wednesday, the scrip fell 22 % to commerce at Rs 31.40 on the BSE. On the National Stock Exchange (NSE), shares plunged 23 % to commerce at Rs 31.10 apiece.

Last week, the inventory exchanges determined to impose restrictions on buying and selling in Jet Airways shares from 28 June as a part of preventive surveillance measures to curb extreme volatility. In a round, NSE mentioned shares of the corporate could be shifted from “Rolling Segment to Trade for Trade Segment, wherein the settlement in the scrip will take place on gross basis with 100 per cent upfront margin and 5 percent price band”.

There are restrictions in buying and selling of shares which can be below Trade for Trade Segment.

On Friday, new civil aviation minister Hardeep Singh Puri mentioned that he was confident that issues at grounded Jet Airways could be solved, within the authorities’s first feedback on the debt-laden provider because it was reelected final month.

“(We are) very confident we can solve the problems at the now defunct carrier,” Puri mentioned on the sidelines of a convention in New Delhi, in feedback extensively interpreted as referring to Jet Airways.

In a serious setback to the lenders’ revival plan of Jet Airways, two of its operational creditors — Shaman Wheels and Gaggar Enterprises — on Monday moved the NCLT searching for chapter proceedings in opposition to the airline.

Last week, the efforts to revive the cash-starved airline light after London-based Hinduja Group determined to halt negotiations for getting a stake in now-grounded Jet Airways whereas Abu Dhabi-based Etihad Airways put its plan on maintain to speculate additional.

–With PTI inputs

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