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NCLT to Jet Airways CoC: Release interim funding in 15 days

The Mumbai bench of the NCLT asked Jet Airways’ CoC to disburse interim funding within the next 15 days
New Delhi: The Mumbai bench of the National Company Law Tribunal (NCLT) asked Jet Airways’ Committee of Creditors (CoC) to disburse interim funding within the next 15 days. The fund will be utilised for aircraft maintenance and to pay staff processing claims made by various creditors of the grounded airline, sources aware of the development said. “The NCLT has given CoC another 15 days to make the payout,” the source said.

Jet Airways’ lead lender paid Rs 10 cr as interim funding

Jet Airways’ lead lender State Bank of India (SBI), which has the highest exposure to the beleaguered airline’s debt, has paid about Rs 10 crore as interim funding. Other lenders are yet to make their contributions, the source said.

Jet owes dues worth over Rs 8,500 cr

A consortium of 26 lenders, led by the SBI, has approached the NCLT in June to recover dues over Rs 8,500 crores from the airline. The banks had approached the NCLT after they failed to find a buyer for the airline. Jet Airways shut down operation in April this year when it ran out of funds.

The backdrop

The CoC had approved interim funding of Rs 71 crore in July for hiring people on contracts to verify claims made by different creditors of the airline and for maintenance of aircraft. The Naresh Goyal-owned airline has liabilities over Rs 30,000 crores, including over Rs 10,000 crores in vendor dues, Rs 8,500 crores along with interest owed to lenders, over Rs 3,000 crores in salary dues, and more than Rs 13,500 crores in accumulated losses over the past three years.