Two of the employee associations of Jet Airways India Ltd have decided to approach the National Company Law Tribunal (NCLT) next week and become parties in the insolvency proceedings against the debt-laden airline, according to a report in Moneycontrol.
The two associations are the Society for Welfare of Indian Pilots (SWIP) and Jet Airways Aircraft Maintenance Engineers' Association (JAMEWA). The National Aviators Guild, the union of Jet Airways’ pilots, is also expected to approach NCLT.
“Claims will be filed as per procedure. It will take at least a week to collect the data, thereafter we will proceed,” a senior official told Moneycontrol.
The move comes after NCLT on Thursday admitted the State Bank of India (SBI)-led lenders’ insolvency application against Jet Airways. The Mumbai bench of NCLT also suggested a timeline of 90 days for the resolution of the case, citing it as a matter of national importance. The corporate insolvency resolution process is normally supposed to be completed in 180 days, with a provision of extension by another 90 days.
NCLT directed Jet Airways’ Insolvency Resolution Professional (IRP) to submit fortnightly progress reports on the case, with the first such report to be submitted before 5 July.
On 18 June, SBI had filed insolvency petition under Section 7 of the Insolvency and Bankruptcy Code (IBC) and also proposed Ashish Chhawchharia of Grant Thornton as IRP.
SBI Chairman Rajnish Kumar said on Thursday that the decision to refer the resolution of Jet Airways under IBC was taken aft er due diligence by all lenders. “There are cogent reasons for lenders. Every decision is taken after lot of due diligence,” Kumar said during SBI’s annual general meeting (AGM).
Kumar also said that the possibility of liquidation could not be ascertained at this stage. “How can I foresee what will happen in NCLT…This is the first case of aviation sector bankruptcy that will be tested,” he added.
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