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NCLT on Wednesday cautioned Jet Airways CoC of contempt proceedings if they do not release interim funds

NCLT on Wednesday cautioned Jet Airways CoC of contempt proceedings if they do not release interim funds

MUMBAI: The NCLT on Wednesday cautioned Jet Airways CoC of contempt proceedings if they do not release interim funds to the resolution professional by January 20 for completion of bankruptcy proceedings.

“We again reiterate and instruct the Committee of Creditors (CoC) to release the interim sum as required by the RP of the grounded airline, so that the corporate bankruptcy resolution process (CIRP) is completed and the assets of Jet are not devalued,” Mumbai-bench of NCLT in its order said. Further, the bench comprising Bhaskara Pantula Mohan and Rajesh Sharma directed the CoC to at least pay the amount by January 20, or the tribunal will initiate contempt proceedings against the defaulting members. The tribunal led the CoC members, who haven’t honoured the order of the court, to stay present on February 19 – the next date of hearing.

This direction came after the settlement professional pointed out that it is under enormous pressure as many CoC members, notwithstanding the tribunal’s earlier order, haven’t released funds.

The creditors had in-principle sanctioned crore to the RP. Two banks and lead banker SBI had allegedly already disbursed their part of the quantity. Meanwhile, the RP submitted its progress report saying that beneath the fresh expression of interest (EoIs), which was decided on December 17, has received attention from two parties.

The CoC has decided January 15 as the last date of submission of EoIs and February 17 as the final date of entry of resolution plans, he said. South America’s Synergy Group has registered its documents under this fresh EoI, he said, adding the other one is a national company, but not in the airline business.

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