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    First crucial meeting of Jet Airways lenders under IBC on July 16

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    First crucial meeting of Jet Airways lenders under IBC on July 16

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    The State Bank of India-led consortium of lenders were forced to seek a resolution under India’s Insolvency and Bankruptcy Code (IBC) at the Mumbai bench of India’s bankruptcy court in June after only a conditional bid for the airline was received.

    The lenders of debt-laden Jet Airways will hold their first meeting on July 16, when they will launch the process of firming up the bid conditions to find a buyer for the airline or its remaining assets and recover some of the dues after they moved India’s bankruptcy court.
    The State Bank of India-led consortium of lenders were forced to seek a resolution under India’s Insolvency and Bankruptcy Code (IBC) at the Mumbai bench of India’s bankruptcy court in June after only a conditional bid for the airline was received. There were joined the pleas filed by a bunch of operational creditors at National Company Law Tribunal (NCLT), India’s bankruptcy court, which hears arguments from lenders and defaulters.
    Banks will hit the ground running at the very first meeting of the creditors committee so that they are able to issue the Expression of Interest document at the earliest, three sources intimately aware of the development told CNBC-TV18. All spoke on the condition of anonymity.
    A banking executive who is part of the consortium of lenders told CNBC-TV18 that while the time allowed for resolution under the IBC is 180 days, NCLT had directed them to fast-track the process in ‘national interest’, and try to complete it within 90 days. He too did not want to be named.
    Jet Airways, once India’s biggest private carrier, stopped flying in April after a severe cash crunch that left thousands of employees without jobs.
    Also on the agenda for the first meeting is deciding on the quantum of funds that would be required in the interim, especially for maintenance and upkeep of the remaining assets, until a new buyer is found, said another person familiar with the matter, requesting anonymity. The interim funding will be in the form of priority debt and can be raised from the existing consortium, or outside, the person said.
    Jet Airways owes more than Rs 8,500 crore to the banks as of March 2019, but the total claims against the airline are yet to be verified by the resolution professional. While the financial creditors’ claims have been verified, the process of verifying claims by operational creditors is yet to be completed, added the person who spoke about the quantum of interim funds.
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