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    Jet Airways headquarter owner, lenders reach settlement

    Synopsis

    Committee of creditors reaches agreement with Luckystar Property to settle Siroya Centre dispute out of court.

    ET Bureau
    MUMBAI: The lenders of Jet Airways have approved the settlement with Luckystar Property Holding, the owner of the Siroya Centre, a building that once was headquarters for the grounded carrier.

    Luckystar and the committee of creditors (CoC) were in talks since August, when the custodian of airways’ assets informed the National Company Law Tribunal (NCLT) that the airline was willing to vacate its headquarters and another office in Mumbai to resolve its disputes with Luckystar Property Holdings and mortgage lender HDFC Ltd.

    “The CoC of Jet Airways has approved the consent terms with Luckystar Property Holding through a resolution on October 4, where overwhelming 95.5% of lenders were in favour of the settlement and the rest abstained from voting,” informed the counsel for the resolution professional in the court. “The lenders have reached an agreement to settle the dispute out-of-court on a commercial basis as Jet can now use its own vacant premises.”

    The owner of Siroya House had approached the Mumbai bench of NCLT soon after the company was admitted for the insolvency resolution process. Now, the tribunal has reserved its order on the settlement. NCLT asked the parties whether the revival plan would be affected if the headquarters go away.

    Senior counsel Janak Dwarkadas, appearing for Luckystar, said the asset was not owned by the grounded carrier but it was merely a licence. “If CoC feels that anything is proving to be a liability rather than an asset, it can decide to dispose it off to save the insolvency resolution cost,” he said.

    Lease for the building was terminated on June 7 and the company was admitted for debt resolution under the Insolvency and Bankruptcy Code on June 20, but goods including computers and files of Jet are still lying in the office, Luckystar Property Holdings told the tribunal.

    The RP of the Jet Airways case has received claims worth close to Rs 30,000 crore and has so far accepted only about one-third of the claims that came from financial creditors. The RP has accepted close to Rs 8,500 crore from financial institutions and is in the process of verifying claims worth Rs 15,000 crore.


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