Jet Airways plunged into deeper financial crisis, debts mount over Rs 14K cr

Grounded carrier Jet Airways plunged into a deeper financial crisis as the resolution professional (RP), appointed by the bankruptcy court in June, accepted additional claims worth over Rs 500 crore taking its current debt to over Rs 14,000 crore. The number is expected to rise as claims worth Rs 4,500 crore are still to be verified.

Between September and October, Grant Thronton’s Ashish Chhawchharia, the RP, received over 590 new claims by operational creditors taking the claims tally to 20,011. Of these, 16,561claims worth Rs 14,640 crore have been admitted so far, according to the latest list of creditors on the Jet website.

Claims worth Rs 17,003 crore have been rejected while those worth Rs 4,473 crore are still under verification, according to the list.

Since being appointed in June, the RP has received claims for over Rs 36,000 crore. Banks and financial institutions have filed 37 claims worth Rs 10,223 crore, of which 33 claims worth Rs 8,231 crore have been admitted. Financial creditors include 13 domestic banks and financial institutions, 12 foreign entities, eight lessors, and four other creditors.

While claims worth Rs 6,419 crore by domestic banks and institutions have been admitted under the insolvency process, claims worth Rs 1,568 crore by foreign banks and institutions have been admitted by the RP. Although the lessors have filed claims worth Rs 1,889 crore, only Rs 243 crore have been approved while claims worth Rs 202 crore are currently under verification.

Among state-run banks, State Bank of India alone is reportedly owed Rs 1636 crore, Yes Bank Rs 1084 crore, and Punjab National Bank Rs 956 crore. The three account for the maximum outstanding amount admitted by the RP so far.

The document, uploaded on the Jet website on Wednesday night, also states that a staggering 4,575 ticket refund claims worth Rs 3,080 crore have been filed, but only Rs 1,648 crore have been admitted and claims worth Rs 878 crore are still being verified.

Similarly, out of Rs 14,128 crore claimed by 69 aircraft lessors, only those worth Rs 1,572 have been admitted.

South America-based Synergy Group Corp, which owns a majority stake in Avianca Airlines, South America’s second largest airline, is expected to submit its resolution plan today as its extended deadline ends. The aviation major had submitted an expression of interest in August to revive Jet and sought time to look for partners and come up with a revival plan. The Committee of Creditors led by State Bank of India had given the group time to submit their plan by November 15.

Jet Airways, which stopped commercial flight operations on April 18 after a series of payment defaults, had gone into insolvency after the National Company Law Tribunal (NCLT), Mumbai bench admitted a petition filed by SBI on June 20. Insolvency resolution professional Ashish Chhawchharia was appointed by NCLT to take control of the company.