Jet Airways COC extends deadline for submitting resolution to March 9

The JetAirways'Committee of Creditors on Tuesday extended the date for submitting a resolution plan to March 9 after Russia-based Far East Development Fund submitted an expression of interest (EoI). The meeting was held to discuss the way forward for the crisis-hit airline as the deadline for bid submissions ended on Monday.
The meeting took place in the backdrop of two suitors showing interest in the grounded airline but failing to submit a resolution plan for bid submissions on Monday. Prudent ARC, one of the potential suitors had sought an additional four weeks’ time to submit a revival proposal for the airline, Business Standard reported, while the South America-based Synergy Group is yet to submit its plan.
Prudent ARC is in talks with investors and has submitted letters of support from its investors. The resolution professional of Jet is seeking more clarity on the same to ascertain that investors are not disqualified under rules from participating in the airline’s revival. Prudent ARC had earlier signed a non-disclosure agreement with the resolution professional of Jet.
In December last year, Synergy Group had sought more time to take a decision on investing in the grounded airline. In December 2019, the UK-based Hinduja Group yet again expressed interest to buy Jet Airways.
ALSO READ: Jet Airways to sell one of its Boeing 777 aircraft to Netherland's KLM
Jet Airways was admitted for insolvency on June 20 last year, after lenders failed to sell the grounded airline. Creditors' claims for the airline are of Rs 36,090 crore, of which Rs 14,640 crore was admitted as on October 20.

Jet Airways (Illustration: Ajay Mohanty)Jet Airways (Illustration: Ajay Mohanty)
The airline has 12 aircraft, including three Boeing 737s, six Boeing 777s, and three Airbus A330s (including one leased to Air Serbia). Of them, the three Boeing 737s are fully-owned by the airline. There is a pending loan of around Rs 250 crore on the remaining planes.
Meanwhile, to settle liquidation in the Netherlands, the airline is selling one of its six Boeing 777 aircraft to KLM to settle pending aircraft loans and meet insolvency resolution expenses.
As reported by Business Standard, the deal value has not been disclosed, but sources said could fetch the airline around $23 million. As a part of the agreement, Dutch airline KLM will purchase a Jet Airways Boeing 777 aircraft, which was seized in Amsterdam last April, along with the grounded airline's marketing data and catering equipment.

Jet fuel price hiked by 2.6%, cost of non-subsidised LPG goes up by Rs 19

Jetfuel or ATF price was on Wednesday hiked by 2.6 per cent and that of non-subsidised cooking gas LPG by Rs 19 per cylinder on the back of a rise in international rates. Price of Aviation Turbine Fuel (ATF), used to power aeroplanes, was raised by Rs 1,637.25 per kilolitre, or 2.6 per cent, to Rs 64,323.76 per kl in Delhi, according to a price notification of state-owned fuel retailers.
This is the second straight monthly increase in rates warranted due to firming up of prices in the international market.

In India, which is dependent on imports to meet 84 per cent of its oil needs, prices of domestic fuels are at par with benchmark international prices. ATF price was on December 1 increased by a marginal Rs 13.88 per kl.
The two back-to-back increases have push jet fuel prices to their highest since June 2019. The hike will add to the burden of cash strapped airlines that are already reeling under pressure from cut-throat competition in the sector.
Despite the increase, at Rs 64.32 per litre ATF costs less than petrol and diesel. A litre of petrol in the national capital comes for Rs 75.14 while diesel is priced at Rs 67.96 a litre. Simultaneously, oil companies also raised the price of non-subsidised LPG to Rs 714 per 14.2-kg cylinder from Rs 695 previously.
This is the fifth straight monthly increase in cooking gas prices since September 2019. In all, non-subsidised cooking gas prices have gone up by Rs 139.50 per cylinder in the last five months.
Non-subsidised LPG is the gas that consumers buy after exhausting their quota of 12 cylinders of 14.2-kg at sub-market or subsidised rates of Rs 495.86.
LPG, as well as ATF prices, are revised on 1st of every month based on the average international rate for benchmark fuel and foreign exchange rate in the preceding month.
Also, the price of kerosene sold through the public distribution system (PDS) was increased by 26 paise to Rs 35.58 per litre in Mumbai.
This is in accordance with the 2016 decision to raise rates by 25 paise a litre every month till subsidy on the fuel is eliminated. Delhi has been declared kerosene-free and no PDS kerosene is sold in the national capital.

Post NCLT extension, Jet Airways' creditors decide to seek fresh bids

The creditors of shuttered JetAirways have decided to seek fresh initial bids for the airline.
The Committee of Creditors (CoC) would seek fresh Expression of Interest (EoI), according to a regulatory filing on Monday.

Earlier this month, the National Company Law Tribunal (NCLT) had directed the CoC to expedite their decision on seeking fresh EoIs in view of new interest being shown for the grounded airline.
Once a storied full service carrier, Jet Airways stopped flying in April after it ran out of money for daily operations. The airline is undergoing resolution process under the Insolvency and Bankruptcy Code (IBC).
"... the CoC passed the resolution to issue fresh invitation of Expression of Interest for the corporate debtor in the e-voting concluded on December 22, 2019," the filing said on Monday.
Synergy Group, the sole potential bidder for Jet Airways, had sought more time to take a decision on investing in the grounded airline.
The tribunal had also approved extension of Jet Airways insolvency resolution period by 90 days.

Lenders decide to refer Jet Airways for bankruptcy proceedings

Lenders have decided to refer Jet Airways for bankruptcy proceedings after failing to get investors for the grounded airline.
"After due deliberations, lenders have decided to seek resolution under IBC since only a conditional bid was received," said the lenders led by the State Bank of India, referring to Insolvency and Bankruptcy Code.

The airline halted operations on April 17 after its lenders refused to provide further funds to keep it afloat. Once India’s largest private carrier, it had more than 16,000 employees and flights to dozens of international destinations.
Jet's collapse has left thousands without jobs and pushed up air fares across the country.
Jet Airways owes more than Rs 8,000 crore to a consortium of banks led by the State Bank of India, which now run the airline, while it has a much larger debt pile by way of accumulated losses to the tune of Rs 13,000 crore and vendor dues of over Rs 10,000 crore and salary dues of over Rs 3,000 crore, reported news agency PTI.
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