Insolvency proceedingshave been initiated against Jet Airways which formally suspends its operationsince April 17 and saw lenders voting for bankruptcy earlier this month.
The cash-strappedcompany became the first domestic airliner to go into bankruptcy after theMumbai bench of the National Company Law Tribunal admitted an insolvencypetition filed by SBI on behalf of 26 lenders on June 20.
In aregulatory filing on Sunday, Jet Airways said that pursuant to an order datedJune 20, 2019 of NCLT Mumbai Bench, Corporate Insolvency Resolution Process hasbeen initiated for Jet Airways as per the provisions of Insolvency andBankruptcy Code, 2016.
The airlinesfurther said that upon initiation of CIRP, the powers of the Board of Directorsof the company have been suspended and shall be exercised by the InterimResolution Professional.
The Airlinesowes more than Rs. 8,000 crore to banks and thousands of crores more in arrearsto vendors, lessors and employees.
TheNCLT bench comprising VP Singh and Ravikumar Duraisamy set a 90-day deadline toresolution professional Ashish Chhauchharia of Grant Thornton to conclude theresolution process, even though the bankruptcy law allows 180 days for thesame, saying "the matter is of national importance."
Thebench also instructed the resolution professional to file fortnightly progressreport and submit the first such report on July 5 when it will begin to hearthe matter again.
