The National Company Law Appellate Tribunal (NCLAT) on Thursday allowed the Dutch court administrator of Jet Airways to attend the meetings of the bankrupt airline's Committee of Creditors (CoC). With this ruling, the NCLAT has finalised the cross-border insolvency protocol for the airline.
The order comes after the counsel representing both the resolution professional (RP) of Jet Airways and the Dutch court administrator informed the appellate tribunal last Friday that both sides have agreed to cooperate in the insolvency proceedings of the airline.
The three-member bench headed by the NCLAT Chairman S.J. Mukhopadhaya said that the Dutch administrator is equivalent to the resolution professional in India, and under the law also has the right to attend CoC meetings.
In the previous hearing too, Mukhopadhaya had observed that it is the right of the Dutch administrator to attend the CoC meetings and both sides should go together. The debt-ridden Jet Airways is facing insolvency proceedings in The Netherlands too. It was declared bankrupt thereafter it had failed to pay two European creditors.
The Dutch court subsequently appointed a bankruptcy administrator. The Mumbai bench of the National Company Law Tribunal (NCLT) had rejected the Dutch administrator's plea to recognize their proceedings, following which the administrator approached the NCLAT. The grounded Jet Airways owes over Rs 8,000 crore to its lenders.
Besides the lenders, the airline is estimated to have a total liability of about Rs 25,000 crore which includes dues of operational creditors. Jet Airways, on April 17, announced the temporary suspension of all flight services as it failed to secure interim funding to maintain even the bare minimum operations.
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Source: Money Life
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