The lenders of Jet Airways have reached a settlement with the Luckystar Property Holdings which is the owner of the Siroya Centre. The latter was at some time in the past was used as the Headquarter for the company- Jet Airways.
The Committee of Creditors (CoC) of Jet Airways were engaged in negotiation with the Luckystar Holdings since August. Meanwhile, the custodian of the Jet Airways’ assets approached the National Company Law Tribunal saying that the company is willing to vacate the property being used as its Headquarters and one office located in Mumbai for resolution of the disputes between the airline company and the Luckystar Holdings and its lender- HDFC Ltd.
The settlement was reached by a majority of almost 95.5% lenders voting in favor of the settlement whereas the remaining number of people chose to abstain from voting. This was communicated on October 4, 2109. ‘’The lenders have given consent to an out-of-court settlement on a commercial basis as the airline company can now use its vacated land’’ said the counsel for the resolution professional. A senior counsel appearing on behalf of Luckystar said that the ground never belonged to the company. It was a lease agreement. He also said that if the CoC feels that there is anything that is more like a liability than an asset, it can dispose it off in order to save the resolution cost.
It should be noted that the lease agreement for the land was terminated on June 7, 2019, and soon thereafter Jet was filed for debt resolution on June 20, 2019, under the Insolvency and Bankruptcy Code 2016. The owner of the Siroya Centre approached the Mumbai bench of the National Company Law Tribunal after hearing that the company has been booked for debt resolution.
The Resolution Professional of Jet Airways said that he has received claims of approx. Rs. 30,000 crore but has accepted claims of only one-third of the total claim amount which is by the financial creditors of the company. He also said that approx. Rs. 8,500 crore from the financial institutions and he is still in the process of verification of claims of about Rs. 15,000 crore.