Hardeep Singh Puri (File Photo)
Hardeep Singh Puri (File Photo)

Revival of Jet Airways only possible under Insolvency and Bankruptcy Code: Hardeep Singh Puri

ANI | Updated: Jun 27, 2019 16:53 IST

New Delhi [India], June 27 (ANI): Union Civil Aviation Minister Hardeep Singh Puri on Thursday said that the revival of Jet Airways is only possible under the Insolvency & Bankruptcy Code, 2016.
"Jet Airways (India) Limited reported aggregated losses during last few quarters which eroded its liquidity and jeopardized its ability to sustain its operations. As a result there were significant overdues towards all creditors including the lessors of the aircrafts, pilots, suppliers, oil companies, employees etc. Lenders explored various options for revival of company through resolution plan," Puri said in Lok Sabha on a question on the closure of Jet Airways.
"To mitigate immediate operation crisis faced by the company an interim funding of Rs 1,500 crore was proposed. Out of Rs 1,500 crore required for interim funding, promoters were expected to bring in Rs 750 crore and the lender would provide the remaining amount. However, the promoters did not bring in full amount of their share. Therefore, the lenders consortium led by State Bank of India could not infuse the committed interim fund," he added.
Puri went on to share that "bids were called by the lenders for change in ownership/management of the company."
"However, no unconditional and proper bids was received. It was understood that some of the relaxation/waiver sought are only available under a Corporate Insolvency Resolution Porcess (CIRP) under the Insolvency & Bankruptcy Code, 2016 (IBC). Hence State Bank of India has filed an application in National Company Law Tribunal (NCLT), Mumbai on June 17, 2019 under the Insolvency & Bankruptcy Code to work out a resolution plan. The said application was admitted by NCLT, Mumbai on June 20, 2019. Revival of the airline is now possible only under IBC," Puri stated.
Due to the suspension of operation by Jet Airways, large number of employees of different category working with the airline have been adversely affected, Puri said.
He added, "Further, each airline prepares its business plan on the basis of its own market assessment and liabilities. Mobilizing financial resources and ensuring efficient operations as per business plan are the responsibility of the airline. Government of India has no role in raising funds for Jet Airways (India) Limited, as it is an internal matter of the airline." (ANI)