NCLT admits Jet Airways into bankruptcy process

NEW DELHI: The National Company Law Tribunal (NCLT) on Thursday admitted the State Bank of India-led lenders’ insolvency application against grounded Jet Airways.

The tribunal, which will hear the case next on July, declared a moratorium on recovery of dues from Jet Airways.

An Interim Resolution Professional (IRP) will now take control of the Jet's assets and file first report by July 5.

The IRP has been asked to try and close the Jet's IBC (Insolvency and Bankruptcy Code) process within three months.

The tribunal, meanwhile, rejected judgement by Netherlands court on the airline's liquidation.

Earlier in the day, shares of Jet Airways vaulted a whopping 122 per cent ahead of the hearing.

There were huge short positions on the counter, which will not be available for trading in the F&O segment from the July series, said analysts, who suspected heavy short coverings behind Thursday's sharp upmove.

Rising debt loads mainly cut the wings of Jet in the recent past. The consortium of 26 bankers led by State Bank of India on Tuesday took the airline, which was grounded on April 17, 2018, to India’s bankruptcy court NCLT to recover dues of over Rs 8,500 crore.

Jet’s lenders have been trying to sell the company as a going concern for the past five months, but have failed to find buyers.

The airline owes over Rs 10,000 crore to its hundreds of vendors, primarily aircraft lessors, and Rs 3,000 crore to around 23,000 staff who have not been paid since March, PTI reported.